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News

5 Value Stocks In The Healthcare Sector

Author: Benzinga Insights | March 04, 2024 10:44am

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.

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

  1. Organon (NYSE:OGN) - P/E: 4.4
  2. BioNTech (NASDAQ:BNTX) - P/E: 7.47
  3. TherapeuticsMD (NASDAQ:TXMD) - P/E: 0.52
  4. Innoviva (NASDAQ:INVA) - P/E: 6.93
  5. Procaps Gr (NASDAQ:PROC) - P/E: 5.84

Organon's earnings per share for Q4 sits at $0.88, whereas in Q3, they were at 0.87. The company's most recent dividend yield sits at 6.85%, which has decreased by 0.8% from 7.65% last quarter.

BioNTech has reported Q3 earnings per share at $0.73, which has increased by 184.88% compared to Q2, which was -0.86. Most recently, TherapeuticsMD reported earnings per share at $-0.13, whereas in Q2 earnings per share sat at $-0.24. Innoviva's earnings per share for Q4 sits at $0.76, whereas in Q3, they were at 0.98. Procaps Gr saw a decrease in earnings per share from 0.27 in Q2 to $0.08 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.

Posted In: BNTX INVA OGN PROC TXMD

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