After-hours today, McKesson raised its FY EPS guidance to 14.60-14.80, about 2% above the consensus analyst estimate of 14.41. Its last round of guidance was disappointing, so this reflects a significant improvement in the company's fundamentals. Even though the guidance bump was only 2%, it could catalyze a much larger move in the stock price, which was already trading at a low forward P/E of about 10. Today's guidance implies a forward P/E of more like 9.7 based on today's closing price. McKesson has been in an uptrend anyway, so fortunately for me, I already owned some shares.
Note
D'oh! I just noticed a new news article that says Oklahoma is suing McKesson over the opioid epidemic. This stock is likely to be volatile tomorrow with the combination of good and bad news. Don't buy the inflated after-hours price; wait for a good dip tomorrow to enter.Note
Extremely strong results today!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.