What is a Value Stock?
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:
- Baudax Bio BXRX - P/E: 0.1
- IsoPlexis ISO - P/E: 0.18
- eFFECTOR Therapeutics EFTR - P/E: 0.96
- QuidelOrtho QDEL - P/E: 3.26
- Graphite Bio GRPH - P/E: 0.61
This quarter, Baudax Bio experienced an increase in earnings per share, which was $-3.75 in Q1 and is now $-0.69. IsoPlexis has reported Q2 earnings per share at $-0.56, which has increased by 24.32% compared to Q1, which was -0.74. eFFECTOR Therapeutics's earnings per share for Q2 sits at $-0.17, whereas in Q1, they were at 0.07. QuidelOrtho's earnings per share for Q2 sits at $2.34, whereas in Q1, they were at 11.66. Graphite Bio looks to be undervalued. It possesses an EPS of $-0.48, 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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