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Market Overview

A Look Into Healthcare Sector Value Stocks

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What is a Value Stock?

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. Cooper Companies (NYSE:COO) - P/E: 8.47
  2. Community Health Systems (NYSE:CYH) - P/E: 2.97
  3. Quidel (NASDAQ:QDEL) - P/E: 6.79
  4. SIGA Technologies (NASDAQ:SIGA) - P/E: 9.44
  5. Innoviva (NASDAQ:INVA) - P/E: 5.9

This quarter, Cooper Companies experienced an increase in earnings per share, which was 3.16 in Q4 and is now 3.17. Its most recent dividend yield is at 0.02%, which has ('', 'not changed') by 0.0% from 0.02% in the previous quarter.

Most recently, Community Health Systems reported earnings per share at 0.96, whereas in Q3 earnings per share sat at 0.18. Community Health Systems does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Quidel saw an increase in earnings per share from 5.78 in Q3 to 11.07 now. Quidel does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, SIGA Technologies reported earnings per share at 0.26, whereas in Q3 earnings per share sat at 0.31. SIGA Technologies does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Innoviva reported earnings per share at 0.48, whereas in Q3 earnings per share sat at 0.26. Innoviva 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.

 

Related Articles (COO + CYH)

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Posted-In: BZI-VSEarnings News Dividends Health Care General

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