Benzinga | Nov 8, 2021 10:00AM EST

A Look Into Healthcare Sector Value Stocks

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.

Below is a list of notable value stocks in the healthcare sector:

2 National Healthcare (AMEX:NHC) - P/E: 7.06

4 Akouos (NASDAQ:AKUS) - P/E: 0.43

6 9 Meters Biopharma (NASDAQ:NMTR) - P/E: 7.24

8 Repare Therapeutics (NASDAQ:RPTX) - P/E: 7.59

10 Collegium Pharmaceutical (NASDAQ:COLL) - P/E: 7.01

This quarter, National Healthcare experienced a decrease in earnings per share, which was 0.98 in Q2 and is now 0.96. The company's most recent dividend yield sits at 3.05%, which has increased by 0.33% from 2.72% last quarter.

Akouos has reported Q2 earnings per share at -0.66, which has decreased by 40.43% compared to Q1, which was -0.47. Akouos does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

9 Meters Biopharma looks to be undervalued. It possesses an EPS of -0.03, which has not changed since last quarter (Q1). 9 Meters Biopharma does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Repare Therapeutics's earnings per share for Q2 sits at -0.71, whereas in Q1, they were at -0.58. Repare Therapeutics does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Collegium Pharmaceutical experienced a decrease in earnings per share, which was 0.27 in Q2 and is now 0.22. Collegium Pharmaceutical 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.