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.

Benzinga Insights has compiled a list of value stocks in the healthcare sector that may be worth watching:

1. Lyell Immunopharma LYEL - P/E: 3.99
2. Monte Rosa Therapeutics GLUE - P/E: 1.56
3. HCA Healthcare HCA - P/E: 9.73
4. Aerovate Therapeutics AVTE - P/E: 0.6
5. Baudax Bio BXRX - P/E: 0.08

This quarter, Lyell Immunopharma experienced an increase in earnings per share, which was $-0.2 in Q1 and is now $-0.04. Most recently, Monte Rosa Therapeutics reported earnings per share at $-0.57, whereas in Q1 earnings per share sat at $-0.51. Most recently, HCA Healthcare reported earnings per share at $4.21, whereas in Q1 earnings per share sat at $4.12. Its most recent dividend yield is at 1.24%, which has increased by 0.41% from 0.83% in the previous quarter.

This quarter, Aerovate Therapeutics experienced a decrease in earnings per share, which was $-0.45 in Q1 and is now $-0.49. Baudax Bio has reported Q2 earnings per share at $-0.69, which has increased by 81.6% compared to Q1, which was -3.75.

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.