12 Undervalued Defensive Stocks for 2025

8. GSK plc (NYSE:GSK)

Forward P/E: 8.65

Number of Hedge Fund Holders: 38

Formerly known as GlaxoSmithKline, GSK plc (NYSE:GSK) is a British global pharmaceutical and healthcare company that develops and markets a wide range of medicines, vaccines, and consumer health products. The company is a leader in immunology, respiratory treatments, and vaccines, with its portfolio comprising over 20 vaccines. In addition to other medications, it also develops cancer medicines for endometrial cancer, ovarian cancer, and multiple myeloma.

Fiscal Q3 2024 marked a positive quarter for GSK plc (NYSE:GSK), delivering a 9% sales growth and a 19% profit growth year-to-date. This growth was supported by the company’s accelerated momentum in Specialty Medicines and resilience in its overall portfolio. Its Specialty Medicine sector sales grew by 19%, with double-digital growth in oncology, HIV, and respiratory immunology. This reflects its continued confidence in its outlook for 2026 and beyond.

GSK plc (NYSE:GSK) is advancing several promising assets in oncology and respiratory, including B7-H3 and B7-H4 antibody-drug conjugates for difficult-to-treat cancers and Camlipixant for refractory chronic cough. It is also expanding its antibiotics and vaccines portfolio. Some of its significant products include Gepotidacin, the first completely new antibiotic for uncomplicated urinary tract infections in over 20 years, and the 5-in-1 MenABCWY vaccine for meningococcal diseases.

Ariel Global Fund made the following comment about GSK plc (NYSE:GSK) in its Q3 2023 investor letter:

“Global pharmaceutical and healthcare company, GSK plc (NYSE:GSK), also advanced in the period following a top- and bottom-line earnings beat and subsequent raise in full-year guidance. Shares were also aided by a successful US and European launch of Arexvy, a respiratory syncytial virus (RSV) vaccine for older adults. Although risks around the Zantac litigation remain a concern, we believe GSK should generate sustainable growth and margin expansion as the company transitions its Pharma pipeline towards specialty medicines and vaccines. Furthermore, the company’s robust balance sheet provides the scope for bolt-ons, which has the potential to drive additional growth.”