A Look Into Healthcare Sector Value Stocks

What is a Value Stock?

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.

Benzinga Insights has compiled a list of value stocks in the healthcare sector that may be worth watching:

  1. Fulgent Genetics FLGT - P/E: 5.29
  2. Emergent BioSolutions EBS - P/E: 8.81
  3. Sanofi SNY - P/E: 9.17
  4. Community Health Systems CYH - P/E: 4.27
  5. AIkido Pharma AIKI - P/E: 2.54

Most recently, Fulgent Genetics reported earnings per share at 6.59, whereas in Q4 earnings per share sat at 6.2. Fulgent Genetics does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Emergent BioSolutions reported earnings per share at 1.53, whereas in Q4 earnings per share sat at 3.67. Emergent BioSolutions does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Sanofi experienced an increase in earnings per share, which was 1.45 in Q4 and is now 1.94. Sanofi does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Community Health Systems saw a decrease in earnings per share from 0.96 in Q4 to 0.36 now. Community Health Systems does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

AIkido Pharma's earnings per share for Q1 sits at -0.07, whereas in Q4, they were at -0.01. AIkido Pharma 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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