A Look Into Healthcare Sector Value Stocks

What Defines 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. AIkido Pharma AIKI - P/E: 2.07
  2. Co-Diagnostics CODX - P/E: 5.41
  3. Sage Therapeutics SAGE - P/E: 3.15
  4. Endo International ENDP - P/E: 7.43
  5. Cooper Companies COO - P/E: 8.71

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.

This quarter, Co-Diagnostics experienced a decrease in earnings per share, which was 0.43 in Q4 and is now 0.26. Co-Diagnostics does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Sage Therapeutics reported earnings per share at -1.83, whereas in Q1 earnings per share sat at -1.64. Sage Therapeutics does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Endo International reported earnings per share at 0.65, whereas in Q1 earnings per share sat at 0.73. Endo International does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Cooper Companies experienced an increase in earnings per share, which was 3.17 in Q1 and is now 3.38. Its most recent dividend yield is at 0.01%, which has decreased by 0.01% from 0.02% in the previous quarter.

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.

Posted In: BZI-VSNews