Here's Why McKesson (MCK) is a Strong Value Stock
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
McKesson (MCK)
San Francisco, CA-based McKesson Corporation is a health care services and information technology company. McKesson operates through two segments:
MCK boasts a Value Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of McKesson are trading at a forward earnings multiple of 15.5X, as well as a PEG Ratio of 1.2, a Price/Cash Flow ratio of 15.2X, and a Price/Sales ratio of 0.2X.
A company's earnings performance is important for value investors as well. For fiscal 2025, nine analysts revised their earnings estimate higher in the last 60 days for MCK, while the Zacks Consensus Estimate has increased $0.39 to $32.07 per share. MCK also holds an average earnings surprise of 4.8%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding MCK to their portfolios.
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McKesson Corporation (MCK) : Free Stock Analysis Report