What Defines 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:
- Assertio Holdings ASRT - P/E: 3.03
- Pfizer PFE - P/E: 7.59
- AcelRx Pharmaceuticals ACRX - P/E: 0.11
- Innoviva INVA - P/E: 4.96
- Intercure INCR - P/E: 8.38
Most recently, Assertio Holdings reported earnings per share at $0.32, whereas in Q3 earnings per share sat at $0.22. Pfizer saw an increase in earnings per share from 1.14 in Q4 to $1.23 now. Most recently, the company reported a dividend yield of 4.17%, which has increased by 1.0% from last quarter's yield of 3.17%.
AcelRx Pharmaceuticals saw a decrease in earnings per share from -0.94 in Q3 to $-1.0 now. Innoviva saw a decrease in earnings per share from 2.8 in Q3 to $-0.98 now. Intercure looks to be undervalued. It possesses an EPS of $0.05, which has not changed since last quarter (Q3).
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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