Understanding Value Stocks

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.

Benzinga Insights has compiled a list of value stocks in the healthcare sector that may be worth watching:

1. Biogen BIIB - P/E: 8.11
2. Plus Therapeutics PSTV - P/E: 0.43
3. Supernus Pharmaceuticals SUPN - P/E: 9.13
4. Ocugen OCGN - P/E: 0.08
5. Innoviva INVA - P/E: 5.39

Biogen saw a decrease in earnings per share from 10.26 in Q2 to 8.84 now. Biogen does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Plus Therapeutics saw an increase in earnings per share from -0.45 in Q2 to -0.39 now. Plus Therapeutics does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Supernus Pharmaceuticals reported earnings per share at 0.74, whereas in Q2 earnings per share sat at 0.65. Supernus Pharmaceuticals does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Ocugen has reported Q3 earnings per share at -0.02, which has increased by 89.47% compared to Q2, which was -0.19. Ocugen does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Innoviva reported earnings per share at 0.26, whereas in Q2 earnings per share sat at 0.69. Innoviva 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.