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Mon. 11 Oct 2021, 10:50am ETBenzinga
In: News

The Meaning Behind 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.

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

  1. Collegium Pharmaceutical (NASDAQ:COLL) - P/E: 7.46
  2. Baudax Bio (NASDAQ:BXRX) - P/E: 0.79
  3. Hologic (NASDAQ:HOLX) - P/E: 9.15
  4. Retractable Technologies (AMEX:RVP) - P/E: 6.38
  5. Emergent BioSolutions (NYSE:EBS) - P/E: 9.49

Most recently, Collegium Pharmaceutical reported earnings per share at 0.27, whereas in Q1 earnings per share sat at 0.41. Collegium Pharmaceutical does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Baudax Bio experienced an increase in earnings per share, which was -0.27 in Q1 and is now -0.21. Baudax Bio does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Hologic experienced a decrease in earnings per share, which was 2.59 in Q2 and is now 1.33. Hologic does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Retractable Technologies's earnings per share for Q2 sits at 0.28, whereas in Q1, they were at 0.52. Its most recent dividend yield is at 13.16%, which has decreased by 0.1% from 13.26% in the previous quarter.

Emergent BioSolutions's earnings per share for Q2 sits at 0.33, whereas in Q1, they were at 1.53. Emergent BioSolutions does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.