Benzinga | May 24, 2021 09:50AM EDT

5 Value Stocks To Watch In The Healthcare Sector

What Defines a Value Stock?

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:

2 Global Cord Blood (NYSE:CO) - P/E: 9.43

4 SIGA Technologies (NASDAQ:SIGA) - P/E: 8.68

6 Ovid Therapeutics (NASDAQ:OVID) - P/E: 2.61

8 AIkido Pharma (NASDAQ:AIKI) - P/E: 2.8

10 Co-Diagnostics (NASDAQ:CODX) - P/E: 4.61

Global Cord Blood has reported Q3 earnings per share at 0.15, which has decreased by 6.25% compared to Q2, which was 0.16. Global Cord Blood does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

SIGA Technologies has reported Q1 earnings per share at -0.02, which has decreased by 107.69% compared to Q4, which was 0.26. SIGA Technologies does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Ovid Therapeutics's earnings per share for Q1 sits at 2.53, whereas in Q4, they were at -0.34. Ovid Therapeutics does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

AIkido Pharma has reported Q1 earnings per share at -0.07, which has decreased by 600.0% compared to Q4, which was -0.01. AIkido Pharma does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Co-Diagnostics has reported Q1 earnings per share at 0.26, which has decreased by 39.53% compared to Q4, which was 0.43. Co-Diagnostics 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.