A Look Into Healthcare Sector Value Stocks

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.

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

1. Agile Therapeutics (NASDAQ:AGRX) - P/E: 0.04
2. Chimerix (NASDAQ:CMRX) - P/E: 0.61
3. Cullinan Oncology (NASDAQ:CGEM) - P/E: 7.46
4. Ocuphire Pharma (NASDAQ:OCUP) - P/E: 4.99
5. Kiniksa Pharmaceuticals (NASDAQ:KNSA) - P/E: 4.81

This quarter, Agile Therapeutics experienced an increase in earnings per share, which was $-9.0 in Q4 and is now $-7.76. Chimerix has been featured as a value stock. Chimerix's Q1 EPS sits at $-0.24, which has not changed since last quarter (Q4). Cullinan Oncology has reported Q1 earnings per share at $-1.42, which has decreased by 140.68% compared to Q4, which was -0.59. This quarter, Ocuphire Pharma experienced a decrease in earnings per share, which was $1.63 in Q4 and is now $-0.28. Kiniksa Pharmaceuticals has reported Q1 earnings per share at $-0.18, which has decreased by 400.0% compared to Q4, which was 0.06.

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.