5 Value Stocks In The Healthcare Sector

The Meaning Behind 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.

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

1. Baudax Bio BXRX - P/E: 0.71
2. Cigna CI - P/E: 9.17
3. 9 Meters Biopharma NMTR - P/E: 6.47
4. Sage Therapeutics SAGE - P/E: 3.22
5. Relay Therapeutics RLAY - P/E: 7.73

Baudax Bio's earnings per share for Q2 sits at -0.21, whereas in Q1, they were at -0.27. Baudax Bio does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Cigna has reported Q2 earnings per share at 5.24, which has increased by 10.78% compared to Q1, which was 4.73. Its most recent dividend yield is at 1.75%, which has increased by 0.15% from 1.6% in the previous quarter.

9 Meters Biopharma looks to be undervalued. It possesses an EPS of -0.03, which has not changed since last quarter (Q1). 9 Meters Biopharma does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Sage Therapeutics has reported Q2 earnings per share at -1.83, which has decreased by 11.59% compared to Q1, which was -1.64. Sage Therapeutics does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Relay Therapeutics has reported Q2 earnings per share at -0.64, which has decreased by 36.17% compared to Q1, which was -0.47. Relay 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.