A Look Into Healthcare Sector Value Stocks

What is 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. First Wave BioPharma FWBI - P/E: 0.0
2. Arcturus Therapeutics ARCT - P/E: 8.43
3. CalciMedica CALC - P/E: 0.0
4. POINT Biopharma Global PNT - P/E: 6.22
5. Innoviva INVA - P/E: 4.87

First Wave BioPharma saw a decrease in earnings per share from -1.82 in Q1 to $-1.89 now. Arcturus Therapeutics saw a decrease in earnings per share from 0.62 in Q1 to $-1.98 now. CalciMedica saw a decrease in earnings per share from -0.48 in Q1 to $-1.11 now. Most recently, POINT Biopharma Global reported earnings per share at $-0.24, whereas in Q1 earnings per share sat at $-0.16. Most recently, Innoviva reported earnings per share at $0.02, whereas in Q1 earnings per share sat at $0.42.

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.