A Look Into Healthcare Sector Value Stocks

What is 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.

Below is a list of notable value stocks in the healthcare sector:

1. First Wave BioPharma FWBI - P/E: 0.0
2. Exicure XCUR - P/E: 0.36
3. Aprea Therapeutics APRE - P/E: 0.14
4. Organon OGN - P/E: 5.07
5. Prenetics Global PRE - P/E: 0.3

First Wave BioPharma has reported Q2 earnings per share at $-1.89, which has decreased by 3.85% compared to Q1, which was -1.82. Most recently, Exicure reported earnings per share at $-0.68, whereas in Q1 earnings per share sat at $-0.7. Aprea Therapeutics saw an increase in earnings per share from -1.34 in Q1 to $-0.87 now. Most recently, Organon reported earnings per share at $1.31, whereas in Q1 earnings per share sat at $1.11. Most recently, the company reported a dividend yield of 5.14%, which has increased by 0.52% from last quarter's yield of 4.62%.

Most recently, Prenetics Global reported earnings per share at $-0.05, whereas in Q1 earnings per share sat at $-0.04. The company's most recent dividend yield sits at 1.99%, which has decreased by 0.02% from 2.01% last quarter.

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.