The Meaning Behind 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.
The following stocks are considered to be notable value stocks in the healthcare sector:
- Acumen Pharmaceuticals ABOS - P/E: 3.16
- Assertio Holdings ASRT - P/E: 2.89
- Maravai LifeSciences MRVI - P/E: 8.19
- Organon OGN - P/E: 6.09
- Leafly Holdings LFLY - P/E: 2.92
This quarter, Acumen Pharmaceuticals experienced a decrease in earnings per share, which was $-0.26 in Q3 and is now $-0.32. This quarter, Assertio Holdings experienced an increase in earnings per share, which was $0.22 in Q3 and is now $0.32. Maravai LifeSciences's earnings per share for Q4 sits at $0.35, whereas in Q3, they were at 0.37. Organon saw a decrease in earnings per share from 1.32 in Q3 to $0.81 now. Its most recent dividend yield is at 3.83%, which has decreased by 0.49% from 4.32% in the previous quarter.
Leafly Holdings's earnings per share for Q4 sits at $-0.17, whereas in Q3, they were at 0.28.
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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