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.
Benzinga Insights has compiled a list of value stocks in the healthcare sector that may be worth watching:
- Co-Diagnostics (NASDAQ:CODX) - P/E: 3.81
- Fonar (NASDAQ:FONR) - P/E: 8.95
- Select Medical Holdings (NYSE:SEM) - P/E: 9.6
- Achilles Therapeutics (NASDAQ:ACHL) - P/E: 0.43
- Sensus Healthcare (NASDAQ:SRTS) - P/E: 6.76
Co-Diagnostics's earnings per share for Q1 sits at $0.34, whereas in Q4, they were at 0.25. Fonar has reported Q3 earnings per share at $0.32, which has decreased by 43.86% compared to Q2, which was 0.57. Select Medical Holdings looks to be undervalued. It possesses an EPS of $0.37, which has not changed since last quarter (Q4). Most recently, the company reported a dividend yield of 2.16%, which has increased by 0.09% from last quarter's yield of 2.07%.
Achilles Therapeutics has been featured as a value stock. Achilles Therapeutics's Q1 EPS sits at $-0.45, which has not changed since last quarter (Q4). Sensus Healthcare saw a decrease in earnings per share from 0.32 in Q4 to $0.2 now.
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.
