Understanding 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.
The following stocks are considered to be notable value stocks in the healthcare sector:
- Celularity CELU - P/E: 1.49
- Sunshine Biopharma SBFM - P/E: 1.3
- Pfizer PFE - P/E: 7.63
- Aptevo Therapeutics APVO - P/E: 1.84
- Assertio Holdings ASRT - P/E: 9.66
Celularity saw an increase in earnings per share from -0.26 in Q2 to $0.03 now. Sunshine Biopharma's earnings per share for Q3 sits at $-0.08, whereas in Q2, they were at -0.03. This quarter, Pfizer experienced a decrease in earnings per share, which was $1.78 in Q3 and is now $1.14. Most recently, the company reported a dividend yield of 3.17%, which has decreased by 0.47% from last quarter's yield of 3.64%.
This quarter, Aptevo Therapeutics experienced an increase in earnings per share, which was $-1.82 in Q2 and is now $-1.5. This quarter, Assertio Holdings experienced a decrease in earnings per share, which was $0.28 in Q2 and is now $0.22.
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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