5 Value Stocks In The Healthcare Sector

The Meaning Behind 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:

1. Acumen Pharmaceuticals (NASDAQ:ABOS) - P/E: 3.16
2. Assertio Holdings (NASDAQ:ASRT) - P/E: 2.89
3. Maravai LifeSciences (NASDAQ:MRVI) - P/E: 8.19
4. Organon (NYSE:OGN) - P/E: 6.09
5. Leafly Holdings (NASDAQ:LFLY) - P/E: 2.92

This quarter, Acumen Pharmaceuticals experienced a decrease in earnings per share, which was $-0.26 in Q3 and is now $-0.32. This quarter, Assertio Holdings experienced an increase in earnings per share, which was $0.22 in Q3 and is now $0.32. Maravai LifeSciences's earnings per share for Q4 sits at $0.35, whereas in Q3, they were at 0.37. Organon saw a decrease in earnings per share from 1.32 in Q3 to $0.81 now. Its most recent dividend yield is at 3.83%, which has decreased by 0.49% from 4.32% in the previous quarter.

Leafly Holdings's earnings per share for Q4 sits at $-0.17, whereas in Q3, they were at 0.28.

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.