Should Value Investors Buy McKesson (MCK) Stock?

Core Viewpoint - McKesson (MCK) is identified as a strong value stock with a Zacks Rank of 2 (Buy) and an A grade for Value, indicating its potential for investment based on valuation metrics [2][3]. Valuation Metrics - MCK has a P/E ratio of 15.98, which is lower than the industry average of 18.58, suggesting it may be undervalued [2]. - The stock's Forward P/E has fluctuated between 12.75 and 16.26 over the past 52 weeks, with a median of 14.82 [2]. - MCK's PEG ratio stands at 1.53, compared to the industry average of 1.73, indicating a favorable growth outlook relative to its valuation [2]. - The PEG ratio has ranged from 1.23 to 1.55 in the past year, with a median of 1.39 [2]. Cash Flow Metrics - MCK's P/CF ratio is 15.63, significantly lower than the industry average of 20.18, which points to its attractive cash flow valuation [3]. - The P/CF ratio has varied between 11.52 and 15.88 over the last 52 weeks, with a median of 13.25 [3]. Overall Assessment - The combination of MCK's valuation metrics and strong earnings outlook suggests that the stock is likely undervalued, making it an impressive value stock at present [3].