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 labeled as a value stock.
The following stocks are considered to be notable value stocks in the healthcare sector:
- Onconova Therapeutics (NASDAQ:ONTX) - P/E: 0.85
- Genesis Healthcare (NYSE:GEN) - P/E: 1.5
- Coherus BioSciences (NASDAQ:CHRS) - P/E: 7.13
- Seneca Biopharma (NASDAQ:SNCA) - P/E: 9.82
- Five Star Senior Living (NASDAQ:FVE) - P/E: 3.65
Onconova Therapeutics has reported Q2 earnings per share at -0.04, which has decreased by 33.33% compared to Q1, which was -0.03. Onconova Therapeutics does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Genesis Healthcare has reported Q2 earnings per share at -0.2, which has decreased by 171.43% compared to Q1, which was 0.28. Genesis Healthcare does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Coherus BioSciences has reported Q2 earnings per share at 0.81, which has increased by 68.75% compared to Q1, which was 0.48. Coherus BioSciences does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Seneca Biopharma has reported Q2 earnings per share at -0.15, which has increased by 37.5% compared to Q1, which was -0.24. Seneca Biopharma does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Five Star Senior Living reported earnings per share at 0.1, whereas in Q1 earnings per share sat at -0.55. Five Star Senior Living 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.