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 labeled as a value stock.

The following stocks are considered to be notable value stocks in the healthcare sector:

1. Ocugen OCGN - P/E: 0.05
2. Coherus BioSciences CHRS - P/E: 7.39
3. Oncternal Therapeutics ONCT - P/E: 1.96
4. OpGen OPGN - P/E: 2.94
5. Karuna Therapeutics KRTX - P/E: 0.16

Ocugen has reported Q2 earnings per share at -0.19, which has decreased by 171.43% compared to Q1, which was -0.07. Ocugen does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Coherus BioSciences reported earnings per share at 0.81, whereas in Q1 earnings per share sat at 0.48. Coherus BioSciences does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Oncternal Therapeutics saw a decrease in earnings per share from -0.31 in Q1 to -0.34 now. Oncternal Therapeutics does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

OpGen’s earnings per share for Q2 sits at -0.49, whereas in Q1, they were at -0.43. OpGen does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Karuna Therapeutics has reported Q2 earnings per share at -0.65, which has decreased by 96.97% compared to Q1, which was -0.33. Karuna Therapeutics 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.