A Look Into Healthcare Sector Value Stocks

Author: Benzinga Insights | February 28, 2022 09:43am

What is 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.

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

1. Tivity Health (NASDAQ:TVTY) - P/E: 9.13
2. Quest Diagnostics (NYSE:DGX) - P/E: 8.5
3. Xtant Medical Holdings (AMEX:XTNT) - P/E: 3.56
4. Timber Pharmaceuticals (AMEX:TMBR) - P/E: 2.23
5. Ironwood Pharmaceuticals (NASDAQ:IRWD) - P/E: 3.44

Tivity Health saw a decrease in earnings per share from 0.42 in Q3 to $0.3 now. This quarter, Quest Diagnostics experienced a decrease in earnings per share, which was $3.96 in Q3 and is now $3.33. Most recently, the company reported a dividend yield of 1.94%, which has increased by 0.26% from last quarter's yield of 1.68%.

Xtant Medical Holdings has reported Q3 earnings per share at $-0.02, which has decreased by 100.0% compared to Q2, which was -0.01. Timber Pharmaceuticals has been featured as a value stock. Timber Pharmaceuticals's Q3 EPS sits at $-0.08, which has not changed since last quarter (Q2). Ironwood Pharmaceuticals has reported Q4 earnings per share at $0.27, which has decreased by 18.18% compared to Q3, which was 0.33.

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: DGX IRWD TMBR TVTY XTNT