The Meaning Behind 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.
Below is a list of notable value stocks in the healthcare sector:
- Quest Diagnostics (NYSE:DGX) - P/E: 8.74
- uniQure (NASDAQ:QURE) - P/E: 2.05
- SunLink Health Systems (AMEX:SSY) - P/E: 1.51
- Global Cord Blood (NYSE:CO) - P/E: 4.39
- ITeos Therapeutics (NASDAQ:ITOS) - P/E: 2.25
Quest Diagnostics's earnings per share for Q1 sits at $3.22, whereas in Q4, they were at 3.33. Most recently, the company reported a dividend yield of 1.95%, which has increased by 0.01% from last quarter's yield of 1.94%.
This quarter, uniQure experienced a decrease in earnings per share, which was $0.17 in Q4 and is now $-1.0. This quarter, SunLink Health Systems experienced a decrease in earnings per share, which was $-0.07 in Q2 and is now $-0.14. Most recently, Global Cord Blood reported earnings per share at $0.17, whereas in Q2 earnings per share sat at $0.16. ITeos Therapeutics has reported Q1 earnings per share at $1.82, which has decreased by 62.7% compared to Q4, which was 4.88.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.
