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.

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

1. TherapeuticsMD TXMD - P/E: 2.26
2. Assertio Holdings ASRT - P/E: 3.61
3. Sensus Healthcare SRTS - P/E: 7.3
4. Cross Country Healthcare CCRN - P/E: 6.42
5. Kiniksa Pharmaceuticals KNSA - P/E: 5.26

TherapeuticsMD saw an increase in earnings per share from -3.62 in Q4 to $-0.24 now. Assertio Holdings's earnings per share for Q1 sits at $0.29, whereas in Q4, they were at 0.32. Sensus Healthcare has reported Q1 earnings per share at $-0.12, which has decreased by 170.59% compared to Q4, which was 0.17. Cross Country Healthcare saw a decrease in earnings per share from 1.09 in Q4 to $0.84 now. Kiniksa Pharmaceuticals saw a decrease in earnings per share from 0.06 in Q4 to $-0.18 now.

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.