What is a Value Stock?
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:
- Achilles Therapeutics ACHL - P/E: 0.44
- Sensus Healthcare SRTS - P/E: 8.73
- Global Cord Blood CO - P/E: 4.01
- BioNTech BNTX - P/E: 3.27
- Fonar FONR - P/E: 9.48
Achilles Therapeutics has been featured as a value stock. Achilles Therapeutics's Q1 EPS sits at $-0.45, which has not changed since last quarter (Q4). Sensus Healthcare saw a decrease in earnings per share from 0.32 in Q4 to $0.2 now. This quarter, Global Cord Blood experienced a decrease in earnings per share, which was $0.17 in Q3 and is now $0.14. BioNTech has reported Q1 earnings per share at $15.97, which has increased by 14.64% compared to Q4, which was 13.93. Most recently, Fonar reported earnings per share at $0.32, whereas in Q2 earnings per share sat at $0.57.
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.
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