The Meaning Behind 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 labelled as a value stock.
The following stocks are considered to be notable value stocks in the healthcare sector:
- ITeos Therapeutics (NASDAQ:ITOS) - P/E: 2.41
- Organogenesis Hldgs (NASDAQ:ORGO) - P/E: 8.68
- Ikena Oncology (NASDAQ:IKNA) - P/E: 4.65
- LAVA Therapeutics (NASDAQ:LVTX) - P/E: 0.33
- Co-Diagnostics (NASDAQ:CODX) - P/E: 4.02
ITeos Therapeutics's earnings per share for Q1 sits at $1.82, whereas in Q4, they were at 4.88. Organogenesis Hldgs has reported Q1 earnings per share at $0.01, which has decreased by 97.5% compared to Q4, which was 0.4. Ikena Oncology has reported Q1 earnings per share at $-0.47, which has decreased by 771.43% compared to Q4, which was 0.07. Most recently, LAVA Therapeutics reported earnings per share at $-0.41, whereas in Q4 earnings per share sat at $-0.38. This quarter, Co-Diagnostics experienced an increase in earnings per share, which was $0.25 in Q4 and is now $0.34.
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.
