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.
Below is a list of notable value stocks in the healthcare sector:
- Kiora Pharmaceuticals KPRX - P/E: 1.01
- Voyager Therapeutics VYGR - P/E: 6.42
- Quoin Pharmaceuticals QNRX - P/E: 2.39
- Procaps Gr PROC - P/E: 7.27
- Solid Biosciences SLDB - P/E: 0.1
Kiora Pharmaceuticals's earnings per share for Q3 sits at $-0.89, whereas in Q2, they were at -0.79. Most recently, Voyager Therapeutics reported earnings per share at $-0.59, whereas in Q2 earnings per share sat at $-0.51. Quoin Pharmaceuticals has reported Q3 earnings per share at $-1.95, which has increased by 8.45% compared to Q2, which was -2.13. Most recently, Procaps Gr reported earnings per share at $0.08, whereas in Q2 earnings per share sat at $0.27. This quarter, Solid Biosciences experienced an increase in earnings per share, which was $-1.25 in Q2 and is now $-1.05.
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.
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