5 Value Stocks In The Healthcare Sector

What are 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 labelled as a value stock.

Below is a list of notable value stocks in the healthcare sector:

1. Talkspace TALK - P/E: 0.89
2. Innoviva INVA - P/E: 9.06
3. Celularity CELU - P/E: 9.78
4. Novartis NVS - P/E: 7.91
5. Senseonics Holdings SENS - P/E: 5.13

Talkspace saw a decrease in earnings per share from -0.13 in Q1 to $-0.15 now. Innoviva saw a decrease in earnings per share from 0.39 in Q1 to $0.05 now. Most recently, Celularity reported earnings per share at $-0.26, whereas in Q1 earnings per share sat at $-0.48. Most recently, Novartis reported earnings per share at $1.56, whereas in Q1 earnings per share sat at $1.46. Its most recent dividend yield is at 2.54%, which has increased by 0.3% from 2.24% in the previous quarter.

Senseonics Holdings has been featured as a value stock. Senseonics Holdings's Q2 EPS sits at $-0.03, which has not changed since last quarter (Q1).

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.