5 Value Stocks In The Healthcare Sector
What are 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.
Benzinga Insights has compiled a list of value stocks in the healthcare sector that may be worth watching:
Innoviva (NASDAQ:INVA) - P/E: 6.35
Satsuma Pharmaceuticals (NASDAQ:STSA) - P/E: 2.4
Ocugen (NASDAQ:OCGN) - P/E: 0.48
Biogen (NASDAQ:BIIB) - P/E: 8.08
Global Cord Blood (NYSE:CO) - P/E: 5.83
Most recently, Innoviva reported earnings per share at 0.26, whereas in Q2 earnings per share sat at 0.69. Innoviva does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Satsuma Pharmaceuticals experienced a decrease in earnings per share, which was -0.65 in Q2 and is now -0.69. Satsuma Pharmaceuticals does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Ocugen's earnings per share for Q3 sits at -0.02, whereas in Q2, they were at -0.19. Ocugen does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Biogen reported earnings per share at 8.84, whereas in Q2 earnings per share sat at 10.26. Biogen does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Global Cord Blood experienced an increase in earnings per share, which was 0.15 in Q1 and is now 0.16. Global Cord Blood does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
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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