What are Value Stocks?
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.
Below is a list of notable value stocks in the healthcare sector:
- Talkspace TALK - P/E: 0.89
- Innoviva INVA - P/E: 9.06
- Celularity CELU - P/E: 9.78
- Novartis NVS - P/E: 7.91
- Senseonics Holdings SENS - P/E: 5.13
Talkspace saw a decrease in earnings per share from -0.13 in Q1 to $-0.15 now. Innoviva saw a decrease in earnings per share from 0.39 in Q1 to $0.05 now. Most recently, Celularity reported earnings per share at $-0.26, whereas in Q1 earnings per share sat at $-0.48. Most recently, Novartis reported earnings per share at $1.56, whereas in Q1 earnings per share sat at $1.46. Its most recent dividend yield is at 2.54%, which has increased by 0.3% from 2.24% in the previous quarter.
Senseonics Holdings has been featured as a value stock. Senseonics Holdings's Q2 EPS sits at $-0.03, which has not changed since last quarter (Q1).
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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