Market Overview

Overview Of Value Stocks In The Healthcare Sector

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Understanding Value Stocks

A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.

Below is a list of notable value stocks in the healthcare sector:

  1. Cronos Group (NASDAQ: CRON) - P/E: 2.57
  2. Viveve Medical (NASDAQ: VIVE) - P/E: 0.08
  3. Brookdale Senior Living (NYSE: BKD) - P/E: 6.3
  4. Five Star Senior Living (NASDAQ: FVE) - P/E: 3.92
  5. Xenetic Biosciences (NASDAQ: XBIO) - P/E: 0.74

Cronos Group saw a decrease in earnings per share from 0.2 in Q1 to -0.19 now. Cronos Group does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Viveve Medical experienced an increase in earnings per share, which was -0.82 in Q1 and is now -0.45. Viveve Medical does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Brookdale Senior Living has reported Q2 earnings per share at -0.65, which has decreased by 822.22% compared to Q1, which was 0.09. Brookdale Senior Living does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Five Star Senior Living reported earnings per share at 0.1, whereas in Q1 earnings per share sat at -0.55. Five Star Senior Living does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Xenetic Biosciences reported earnings per share at -0.15, whereas in Q1 earnings per share sat at -0.19. Xenetic Biosciences does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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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Posted-In: Earnings News Penny Stocks Dividends Health Care General