5 Value Stocks To Watch 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.

The following stocks are considered to be notable value stocks in the healthcare sector:

1. Spok Holdings SPOK - P/E: 7.88
2. ABVC BioPharma ABVC - P/E: 0.01
3. BioNTech BNTX - P/E: 5.99
4. Akerna KERN - P/E: 0.1
5. Quoin Pharmaceuticals QNRX - P/E: 0.01

Spok Holdings has reported Q2 earnings per share at $0.23, which has increased by 53.33% compared to Q1, which was 0.15. Most recently, the company reported a dividend yield of 10.82%, which has increased by 0.99% from last quarter's yield of 9.83%.

This quarter, ABVC BioPharma experienced a decrease in earnings per share, which was $-0.6 in Q1 and is now $-0.68. Most recently, BioNTech reported earnings per share at $-0.86, whereas in Q1 earnings per share sat at $2.2. Akerna saw a decrease in earnings per share from -0.48 in Q1 to $-0.52 now. Most recently, Quoin Pharmaceuticals reported earnings per share at $-2.13, whereas in Q1 earnings per share sat at $-4.08.

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.