5 Value Stocks In The Healthcare Sector

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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 labeled as a value stock.

The following stocks are considered to be notable value stocks in the healthcare sector:

  1. Genesis Healthcare (NYSE: GEN) - P/E: 1.79

  2. Vanda Pharmaceuticals (NASDAQ: VNDA) - P/E: 4.73

  3. XBiotech (NASDAQ: XBIT) - P/E: 1.0

  4. Salarius Pharmaceuticals (NASDAQ: SLRX) - P/E: 1.74

  5. Jaguar Health (NASDAQ: JAGX) - P/E: 0.09

Genesis Healthcare’s earnings per share for Q1 sits at 0.28, whereas in Q4, they were at -0.1. Genesis Healthcare does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Vanda Pharmaceuticals experienced a decrease in earnings per share, which was 0.08 in Q4 and is now 0.01. Vanda Pharmaceuticals does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

XBiotech has reported Q4 earnings per share at -0.63, which has decreased by 320.0% compared to Q3, which was -0.15. XBiotech does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Salarius Pharmaceuticals has reported Q1 earnings per share at -0.22, which has increased by 50.0% compared to Q4, which was -0.44. Salarius Pharmaceuticals does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Jaguar Health saw an increase in earnings per share from -1.62 in Q4 to -0.56 now. Jaguar Health 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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