With Q3 earnings approaching, traders anticipate potential volatility in "McKesson stock price". Historical post-earnings data suggests an average 3% move, driven by revenue surprises. It’s no wonder MCK shares are up 36% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Year-to-date, "McKesson stock price" has outperformed the Dow Jones by 8 percentage points. Analysts attribute this to consistent dividend growth and strong industry fundamentals in U.S. pharma distribution.
