5 Value Stocks In The Healthcare Sector

What is a Value Stock?

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 labelled as a value stock.

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

1. Graphite Bio GRPH - P/E: 0.71
2. Retractable Technologies RVP - P/E: 3.53
3. Aerovate Therapeutics AVTE - P/E: 0.66
4. Day One Biopharmaceutical DAWN - P/E: 4.68
5. Tempest Therapeutics TPST - P/E: 0.32

Graphite Bio has been featured as a value stock. Graphite Bio's Q2 EPS sits at $-0.48, which has not changed since last quarter (Q1). Retractable Technologies saw a decrease in earnings per share from 0.23 in Q1 to $-0.11 now. Most recently, the company reported a dividend yield of 13.16%, which has decreased by 0.1% from last quarter's yield of 13.26%.

Aerovate Therapeutics has reported Q2 earnings per share at $-0.49, which has decreased by 8.89% compared to Q1, which was -0.45. Most recently, Day One Biopharmaceutical reported earnings per share at $-0.6, whereas in Q1 earnings per share sat at $-0.48. Tempest Therapeutics has reported Q2 earnings per share at $-0.79, which has increased by 33.05% compared to Q1, which was -1.18.

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.