A Look Into Healthcare Sector Value Stocks

What are Value Stocks?

A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.

Below is a list of notable value stocks in the healthcare sector:

  1. Sanofi SNY - P/E: 9.03
  2. Meridian Bioscience VIVO - P/E: 9.54
  3. Quidel QDEL - P/E: 5.43
  4. Fulgent Genetics FLGT - P/E: 4.53
  5. Innoviva INVA - P/E: 5.67

Most recently, Sanofi reported earnings per share at 1.94, whereas in Q4 earnings per share sat at 1.45. Sanofi does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Meridian Bioscience experienced a decrease in earnings per share, which was 0.65 in Q1 and is now 0.56. Most recently, the company reported a dividend yield of 2.98%, which has increased by 0.04% from last quarter's yield of 2.94%.

Quidel saw a decrease in earnings per share from 11.07 in Q4 to 4.38 now. Quidel does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Fulgent Genetics experienced an increase in earnings per share, which was 6.2 in Q4 and is now 6.59. Fulgent Genetics does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Innoviva has reported Q1 earnings per share at 0.84, which has increased by 75.0% compared to Q4, which was 0.48. Innoviva does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.

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