What are Value Stocks?
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.
Below is a list of notable value stocks in the healthcare sector:
- Global Cord Blood (NYSE:CO) - P/E: 4.29
- ITeos Therapeutics (NASDAQ:ITOS) - P/E: 3.27
- Regenxbio (NASDAQ:RGNX) - P/E: 8.98
- Walgreens Boots Alliance (NASDAQ:WBA) - P/E: 6.37
- Novartis (NYSE:NVS) - P/E: 8.01
Global Cord Blood saw an increase in earnings per share from 0.16 in Q2 to $0.17 now. Most recently, ITeos Therapeutics reported earnings per share at $1.82, whereas in Q4 earnings per share sat at $4.88. Most recently, Regenxbio reported earnings per share at $-1.58, whereas in Q4 earnings per share sat at $6.67. Walgreens Boots Alliance saw a decrease in earnings per share from 1.68 in Q1 to $1.59 now. The company's most recent dividend yield sits at 4.32%, which has increased by 0.48% from 3.84% last quarter.
This quarter, Novartis experienced an increase in earnings per share, which was $1.4 in Q4 and is now $1.46. Most recently, the company reported a dividend yield of 2.54%, which has increased by 0.3% from last quarter's yield of 2.24%.
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.
