Understanding 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.
Benzinga Insights has compiled a list of value stocks in the healthcare sector that may be worth watching:
- Sonida Senior Living SNDA - P/E: 0.56
- Global Cord Blood CO - P/E: 6.91
- Dynatronics DYNT - P/E: 7.36
- National Healthcare NHC - P/E: 7.17
- Tenet Healthcare THC - P/E: 7.47
Sonida Senior Living saw a decrease in earnings per share from 23.49 in Q2 to 17.48 now. Global Cord Blood has reported Q2 earnings per share at 0.16, which has decreased by 5.88% compared to Q1, which was 0.17. Dynatronics saw a decrease in earnings per share from 0.16 in Q4 to 0.02 now. This quarter, National Healthcare experienced a decrease in earnings per share, which was 0.98 in Q2 and is now 0.96. The company's most recent dividend yield sits at 3.05%, which has increased by 0.33% from 2.72% last quarter.
Tenet Healthcare saw an increase in earnings per share from 1.59 in Q2 to 1.99 now.
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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