A Look Into Healthcare Sector Value Stocks

What is 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:

1. Exicure XCUR - P/E: 0.33
2. Voyager Therapeutics VYGR - P/E: 7.63
3. MEI Pharma MEIP - P/E: 0.96
4. SCYNEXIS SCYX - P/E: 1.27
5. Community Health Sys CYH - P/E: 1.85

Exicure saw an increase in earnings per share from -0.7 in Q1 to $-0.68 now. Voyager Therapeutics saw a decrease in earnings per share from -0.51 in Q2 to $-0.59 now. MEI Pharma's earnings per share for Q1 sits at $8.46, whereas in Q4, they were at -1.51. Most recently, SCYNEXIS reported earnings per share at $-0.04, whereas in Q2 earnings per share sat at $2.46. Most recently, Community Health Sys reported earnings per share at $-0.33, whereas in Q2 earnings per share sat at $-0.22.

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.