Benzinga | Oct 19, 2020 10:14AM EDT

A Look Into Healthcare Sector Value Stocks

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:

2 Oncternal Therapeutics (NASDAQ:ONCT) - P/E: 1.98

4 Morphic Holding (NASDAQ:MORF) - P/E: 7.29

6 Akero Therapeutics (NASDAQ:AKRO) - P/E: 8.31

8 Sanofi (NASDAQ:SNY) - P/E: 9.67

10 Xenetic Biosciences (NASDAQ:XBIO) - P/E: 0.8

Most recently, Oncternal Therapeutics reported earnings per share at -0.34, whereas in Q1 earnings per share sat at -0.31. Oncternal Therapeutics does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Morphic Holding's earnings per share for Q2 sits at -0.52, whereas in Q1, they were at -0.55. Morphic Holding does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Akero Therapeutics reported earnings per share at -0.57, whereas in Q1 earnings per share sat at -0.42. Akero Therapeutics does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Sanofi's earnings per share for Q2 sits at 1.41, whereas in Q1, they were at 1.8. Sanofi does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Xenetic Biosciences saw an increase in earnings per share from -0.19 in Q1 to -0.15 now. Xenetic Biosciences 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.