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:
- Satsuma Pharmaceuticals STSA - P/E: 3.03
- Exagen XGN - P/E: 0.4
- Xenetic Biosciences XBIO - P/E: 1.99
- Geovax Labs GOVX - P/E: 0.01
- Five Star Senior Living FVE - P/E: 2.5
Satsuma Pharmaceuticals saw a decrease in earnings per share from -0.65 in Q2 to -0.69 now. Satsuma Pharmaceuticals does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Exagen has reported Q3 earnings per share at -0.34, which has decreased by 25.93% compared to Q2, which was -0.27. Exagen does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Xenetic Biosciences saw a decrease in earnings per share from -0.15 in Q2 to -1.2 now. Xenetic Biosciences does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Geovax Labs experienced a decrease in earnings per share, which was -0.03 in Q2 and is now -0.73. Geovax Labs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Five Star Senior Living experienced an increase in earnings per share, which was 0.1 in Q2 and is now 0.12. Five Star Senior Living 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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