Overview Of Value Stocks In The Healthcare Sector

Understanding 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.

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

1. Laboratory Corp LH - P/E: 9.63
2. Moderna MRNA - P/E: 9.82
3. Bio-Rad Laboratories BIO - P/E: 2.66
4. uniQure QURE - P/E: 2.63
5. Surface Oncology SURF - P/E: 6.64

Laboratory Corp's earnings per share for Q3 sits at 6.82, whereas in Q2, they were at 6.13. This quarter, Moderna experienced an increase in earnings per share, which was 6.46 in Q2 and is now 7.7. Bio-Rad Laboratories has reported Q3 earnings per share at 3.71, which has increased by 4.8% compared to Q2, which was 3.54. uniQure's earnings per share for Q3 sits at -0.79, whereas in Q2, they were at 8.51. Surface Oncology has been featured as a value stock. Surface Oncology's Q3 EPS sits at -0.44, which has not changed since last quarter (Q2).

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.