Benzinga | Jan 11, 2021 10:12AM EST

5 Value Stocks To Watch In The Healthcare Sector

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:

2 Plus Therapeutics (NASDAQ:PSTV) - P/E: 0.45

4 OpGen (NASDAQ:OPGN) - P/E: 0.5

6 Tonix Pharmaceuticals (NASDAQ:TNXP) - P/E: 0.2

8 AIkido Pharma (NASDAQ:AIKI) - P/E: 5.79

10 Innoviva (NASDAQ:INVA) - P/E: 6.6

Plus Therapeutics's earnings per share for Q3 sits at -0.39, whereas in Q2, they were at -0.45. Plus Therapeutics does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

OpGen saw an increase in earnings per share from -0.49 in Q2 to -0.4 now. OpGen does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Tonix Pharmaceuticals's earnings per share for Q3 sits at -0.09, whereas in Q2, they were at -0.23. Tonix Pharmaceuticals does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, AIkido Pharma experienced an increase in earnings per share, which was -0.07 in Q2 and is now -0.06. AIkido Pharma does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Innoviva reported earnings per share at 0.26, whereas in Q2 earnings per share sat at 0.69. Innoviva 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.