8 Most Undervalued Healthcare Stocks to Buy According to Analysts

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1. GSK plc (NYSE:GSK)

Price Target Upside: 47%

GSK plc (NYSE:GSK) tops our list for being one of the most undervalued stocks. The company was formerly known as GlaxoSmithKline and is a multinational biopharmaceutical and healthcare company that creates and markets a variety of consumer health products, drugs, and vaccines. With more than 20 vaccinations under its belt, this UK-based company is a leader in immunology, respiratory treatments, and vaccines. Additionally, the business creates cancer treatments.

For fiscal Q4 2024, GSK plc (NYSE:GSK) released impressive financial results that showed a robust increase in all important parameters. In 2024, its core operating profit increased by 13%, while its sales increased by 8% to nearly £31 billion. Core profits per share (EPS) increased by 12% as well.

The company’s Specialty Medicines business saw a 19% increase in sales, which was credited with this success. Its oncology revenues almost doubled to over £1.4 billion in 2024, while its HIV sales increased by 13%. With five new product approvals expected in 2025 and 11 successful phase III studies reported in 2024, GSK plc (NYSE:GSK) is steadily bolstering its pipeline. These include depemokimab for severe asthma and Blenrep for multiple myeloma.

Overall, GSK plc (NYSE:GSK) ranks first among the 8 most undervalued healthcare stocks to buy according to analysts. While we acknowledge the potential of healthcare companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GSK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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