Overview Of Value Stocks In The Healthcare Sector

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.

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

1. Baudax Bio BXRX - P/E: 0.74
2. SINTX Technologies SINT - P/E: 6.04
3. Lexicon Pharmaceuticals LXRX - P/E: 7.72
4. Cooper Companies COO - P/E: 9.22
5. Sage Therapeutics SAGE - P/E: 3.34

Most recently, Baudax Bio reported earnings per share at -0.21, whereas in Q1 earnings per share sat at -0.27. Baudax Bio does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

SINTX Technologies saw an increase in earnings per share from -0.11 in Q1 to -0.09 now. SINTX Technologies does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Lexicon Pharmaceuticals has reported Q2 earnings per share at -0.13, which has increased by 13.33% compared to Q1, which was -0.15. Lexicon Pharmaceuticals does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Cooper Companies has reported Q2 earnings per share at 3.38, which has increased by 6.62% compared to Q1, which was 3.17. Its most recent dividend yield is at 0.01%, which has decreased by 0.01% from 0.02% in the previous quarter.

Sage Therapeutics saw a decrease in earnings per share from -1.64 in Q1 to -1.83 now. Sage Therapeutics 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.