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Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

Zacks Equity Research
·2-min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

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McKesson (MCK)

San Francisco, CA-based McKesson Corporation is a health care services and information technology company. McKesson operates through two segments:

MCK is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 17.7X for the current fiscal year compared to the Medical - Dental Supplies industry's P/E of 17.9X. Additionally, MCK has a PEG Ratio of 1.3 and a Price/Cash Flow ratio of 17X. Value investors should also note MCK's Price/Sales ratio of 0.2X.

A company's earnings performance is important for value investors as well. For fiscal 2025, eight analysts revised their earnings estimate higher in the last 60 days for MCK, while the Zacks Consensus Estimate has increased $0.42 to $31.42 per share. MCK also holds an average earnings surprise of 8.4%.

MCK should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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McKesson Corporation (MCK) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research