What are Value Stocks?

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.

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

1. Genesis Healthcare GEN - P/E: 1.63
2. Salarius Pharmaceuticals SLRX - P/E: 1.98
3. Biogen BIIB - P/E: 8.0
4. Coherus BioSciences CHRS - P/E: 9.14
5. Lexicon Pharmaceuticals LXRX - P/E: 2.34

Genesis Healthcare has reported Q1 earnings per share at 0.28, which has increased by 380.0% compared to Q4, which was -0.1. Genesis Healthcare does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Salarius Pharmaceuticals experienced an increase in earnings per share, which was -0.44 in Q4 and is now -0.22. Salarius Pharmaceuticals does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Biogen’s earnings per share for Q2 sits at 10.26, whereas in Q1, they were at 9.14. Biogen does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Coherus BioSciences experienced a decrease in earnings per share, which was 0.53 in Q4 and is now 0.48. Coherus BioSciences does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Lexicon Pharmaceuticals experienced a decrease in earnings per share, which was -0.48 in Q4 and is now -0.63. Lexicon Pharmaceuticals does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.