5 Value Stocks In The Healthcare Sector

The Meaning Behind 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. Aytu BioPharma AYTU - P/E: 0.01
2. Dynavax Technologies DVAX - P/E: 5.3
3. QuidelOrtho QDEL - P/E: 9.24
4. AMN Healthcare Services AMN - P/E: 9.08
5. Rapid Micro Biosystems RPID - P/E: 8.27

This quarter, Aytu BioPharma experienced a decrease in earnings per share, which was $-1.2 in Q1 and is now $-2.15. Dynavax Technologies saw an increase in earnings per share from 0.43 in Q3 to $0.45 now. QuidelOrtho saw a decrease in earnings per share from 1.85 in Q3 to $1.76 now. Most recently, AMN Healthcare Services reported earnings per share at $2.48, whereas in Q3 earnings per share sat at $2.57. This quarter, Rapid Micro Biosystems experienced a decrease in earnings per share, which was $-0.38 in Q3 and is now $-0.39.

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.