10 Best Jim Cramer Stocks To Buy According to Analysts

7. McKesson Corporation (NYSE:MCK)

Average Price Target Upside: 19.29%

Number of Hedge Fund Holders: 70

During a lightning round, Cramer commented on McKesson Corporation (NYSE:MCK) and said:

“It’s time to buy it. You know they’re not just a middleman. They do a lot of good things and I think the stock has had way too big a hit. It’s now selling at a below-market multiple. I’m ready to start buying. Don’t buy all at once. Buy in a pyramid style.”

McKesson (NYSE:MCK) offers various healthcare services, focusing on the distribution of pharmaceutical products and providing support to oncology practices and pharmacies. The company adjusted its fiscal 2025 guidance for adjusted earnings per diluted share, raising the range to $31.75 to $32.55 from an earlier estimate of $31.25 to $32.05. The updated guidance reflects approximately $0.62 in year-to-date gains from its Ventures’ equity investments.

McKesson (NYSE:MCK) forecasts revenue growth in its U.S. Pharmaceutical segment, expecting an increase of 13% to 16%. In Prescription Technology Solutions, revenue is projected to rise by 14% to 18%, although operating profit is expected to increase by 11% to 15%, indicating a modest decline from previous forecasts. For Medical-Surgical Solutions, revenue growth is forecasted between 3% and 7%, with operating profit likely falling at the lower end of the initial guidance range of 6% to 8%. Meanwhile, the International segment is forecasted to see revenue growth of 4% to 8%, coupled with an 8% to 12% increase in operating profit.

Management expressed satisfaction with the performance of the Canadian business during the first quarter and expects this growth trend to continue throughout fiscal 2025. The guidance also includes plans to repurchase around $2.8 billion in shares over the fiscal year.