Why McKesson (MCK) is a Top Value Stock for the Long-Term
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
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight 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 sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Medical - Dental Supplies industry's P/E of 17.7X, shares of McKesson are trading at a forward P/E of 19.2X. MCK also has a PEG Ratio of 1.4, a Price/Cash Flow ratio of 18.3X, and a Price/Sales ratio of 0.3X.
A company's earnings performance is important for value investors as well. For fiscal 2026, eight analysts revised their earnings estimate higher in the last 60 days for MCK, while the Zacks Consensus Estimate has increased $0.42 to $37.10 per share. MCK also holds an average earnings surprise of 3.9%.
MCK should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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McKesson Corporation (MCK) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).