A Look Into Healthcare Sector Value Stocks

Understanding 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.

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

1. Leafly Holdings LFLY - P/E: 0.64
2. Voyager Therapeutics VYGR - P/E: 4.15
3. Viatris VTRS - P/E: 6.47
4. Dynavax Technologies DVAX - P/E: 8.92
5. Histogen HSTO - P/E: 0.69

Leafly Holdings has reported Q1 earnings per share at $-0.14, which has increased by 17.65% compared to Q4, which was -0.17. Voyager Therapeutics saw an increase in earnings per share from -0.61 in Q4 to $2.94 now. Viatris's earnings per share for Q1 sits at $0.77, whereas in Q4, they were at 0.67. The company's most recent dividend yield sits at 5.32%, which has increased by 1.16% from 4.16% last quarter.

Dynavax Technologies's earnings per share for Q1 sits at $-0.19, whereas in Q4, they were at 0.45. This quarter, Histogen experienced a decrease in earnings per share, which was $-0.61 in Q4 and is now $-0.81.

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.