5 Value Stocks In The Healthcare Sector

What Defines a Value Stock?

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. Palisade Bio PALI - P/E: 2.44
2. POINT Biopharma Global PNT - P/E: 7.33
3. Kiniksa Pharmaceuticals KNSA - P/E: 5.25
4. Ocuphire Pharma OCUP - P/E: 4.18
5. Pfizer PFE - P/E: 9.11

Most recently, Palisade Bio reported earnings per share at $-0.53, whereas in Q1 earnings per share sat at $-0.54. Most recently, POINT Biopharma Global reported earnings per share at $-0.24, whereas in Q1 earnings per share sat at $-0.16. Most recently, Kiniksa Pharmaceuticals reported earnings per share at $-0.02, whereas in Q1 earnings per share sat at $-0.18. Ocuphire Pharma saw an increase in earnings per share from -0.28 in Q1 to $-0.24 now. Pfizer saw a decrease in earnings per share from 1.23 in Q1 to $0.67 now. Most recently, the company reported a dividend yield of 4.22%, which has increased by 0.05% from last quarter's yield of 4.17%.

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.