Market Overview

5 Value Stocks To Watch In The Healthcare Sector

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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. Satsuma Pharmaceuticals (NASDAQ: STSA) - P/E: 2.34
  2. Acorda Therapeutics (NASDAQ: ACOR) - P/E: 0.69
  3. Biogen (NASDAQ: BIIB) - P/E: 8.05
  4. Amneal Pharmaceuticals (NYSE: AMRX) - P/E: 9.13
  5. Bio-Rad Laboratories (NYSE: BIO) - P/E: 4.88

This quarter, Satsuma Pharmaceuticals experienced a decrease in earnings per share, which was -0.65 in Q2 and is now -0.69. Satsuma Pharmaceuticals does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Acorda Therapeutics reported earnings per share at -0.23, whereas in Q2 earnings per share sat at -0.35. Acorda Therapeutics does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Biogen’s earnings per share for Q3 sits at 8.84, whereas in Q2, they were at 10.26. Biogen does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Amneal Pharmaceuticals reported earnings per share at 0.16, whereas in Q2 earnings per share sat at 0.13. Amneal Pharmaceuticals does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Bio-Rad Laboratories experienced an increase in earnings per share, which was 1.61 in Q2 and is now 3.0. Bio-Rad Laboratories 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 Small Cap General