A Look Into Healthcare Sector Value Stocks

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.

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

1. QuidelOrtho QDEL - P/E: 3.54
2. Novartis NVS - P/E: 7.56
3. Universal Health Services UHS - P/E: 9.16
4. Clene CLNN - P/E: 5.15
5. Fulgent Genetics FLGT - P/E: 3.04

QuidelOrtho's earnings per share for Q2 sits at $2.34, whereas in Q1, they were at 11.66. Novartis has reported Q2 earnings per share at $1.56, which has increased by 6.85% compared to Q1, which was 1.46. The company's most recent dividend yield sits at 2.54%, which has increased by 0.3% from 2.24% last quarter.

Universal Health Services's earnings per share for Q2 sits at $2.2, whereas in Q1, they were at 2.15. The company's most recent dividend yield sits at 0.74%, which has increased by 0.11% from 0.63% last quarter.

Clene has reported Q2 earnings per share at $-0.07, which has increased by 66.67% compared to Q1, which was -0.21. Fulgent Genetics saw a decrease in earnings per share from 5.08 in Q1 to $0.78 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.