Overview Of Value Stocks In The Healthcare Sector

What Defines 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.

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

1. AcelRx Pharmaceuticals ACRX - P/E: 0.12
2. Procaps Gr PROC - P/E: 7.41
3. Ocuphire Pharma OCUP - P/E: 5.9
4. Moderna MRNA - P/E: 6.6
5. Aptevo Therapeutics APVO - P/E: 1.4

AcelRx Pharmaceuticals saw a decrease in earnings per share from -0.94 in Q3 to $-1.0 now. Procaps Gr saw an increase in earnings per share from -0.07 in Q2 to $0.22 now. Ocuphire Pharma's earnings per share for Q4 sits at $1.63, whereas in Q3, they were at -0.22. Moderna has reported Q4 earnings per share at $3.61, which has increased by 42.69% compared to Q3, which was 2.53. Aptevo Therapeutics's earnings per share for Q4 sits at $-1.44, whereas in Q3, they were at -1.5.

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.