What is a Value Stock?
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:
- Pfizer PFE - P/E: 7.69
- First Wave BioPharma FWBI - P/E: 0.01
- Sensus Healthcare SRTS - P/E: 7.76
- Agile Therapeutics AGRX - P/E: 0.03
- Revelation Biosciences REVB - P/E: 0.02
Pfizer has reported Q1 earnings per share at $1.23, which has increased by 7.89% compared to Q4, which was 1.14. Its most recent dividend yield is at 4.17%, which has increased by 1.0% from 3.17% in the previous quarter.
First Wave BioPharma has reported Q4 earnings per share at $-9.47, which has decreased by 151.24% compared to Q3, which was 18.48. Most recently, Sensus Healthcare reported earnings per share at $-0.12, whereas in Q4 earnings per share sat at $0.17. This quarter, Agile Therapeutics experienced an increase in earnings per share, which was $-9.0 in Q4 and is now $-7.76. Revelation Biosciences saw an increase in earnings per share from -1.77 in Q4 to $-0.51 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.
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