8 Most Undervalued Value Stocks To Buy According To Analysts

6. McKesson Corporation (NYSE:MCK)

Average Upside Potential: 19.21%

Forward P/E: 15.97

EPS Growth This Year: 16.70%

Number of Hedge Fund Holders: 70

McKesson Corporation (NYSE:MCK) serves as a global diversified leader in healthcare and remains dedicated to improving care in every setting. The company operates through four business segments including U.S. Pharmaceutical, Prescription Technology Solutions, Medical-Surgical Solutions, and International. It was founded in 1883 to import and sell therapeutic drugs and herbal products.

The firm has a prominent history of advancing healthcare, spanning almost two centuries as an industry leader. McKesson Corporation (NYSE:MCK) delivers sustained financial growth across its operating segments by executing against four strategic priorities. These include focusing on people and culture, driving sustainable core growth in its distribution business, expanding oncology and biopharma platforms, and evolving and growing the portfolio.

For the first quarter of fiscal 2025, McKesson Corporation delivered adjusted earnings per diluted share growth of 8%. First quarter company revenues grew 6% year-over-year. The U.S. Pharmaceutical segment witnessed strong momentum, especially within the broad Oncology offerings. Factors impacting the results were a slower than anticipated growth in the primary care channels in the Medical-Surgical business and lower contributions from access programs in the Prescription Technology Solutions segment. Simultaneously, the board approved a 15% increase to the quarterly dividend thereby marking the eighth consecutive year of dividend increases.

Although the start to the year was weaker than expected, McKesson Corporation (NYSE:MCK) is confident in its ability to drive long-term growth and in its market-leading assets. With a strong business foundation and a clear strategy alongside material execution, the firm is in an attractive position.