Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Biotechnology & Medical Research industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Latest Biotechnology & Medical Research Stock News

Before choosing which top Biotechnology & Medical Research stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

The Biotechnology and Medical Research sub-industry has a positive outlook, a historically defensive sub-industry. Drug sales are anticipated to have high growth, primarily driven by COVID-19 therapeutics, the continued adoption of many new and innovative therapies, a favorable M&A environment, and a low prevalence of patent expirations in 2022. Additionally, companies could see prescription growth pick up as in-person physician visits return to pre-pandemic levels. As COVID-19 variants have emerged, vaccine boosters have been offered in order to increase efficacy. Due to this, repeat vaccinations will likely be necessary for lifelong immunity which would provide a long-lasting and significant source of revenue for lead vaccine developers. Aside from vaccines, the biotech industry is dependent on the volume of new therapy approvals. The FDA’s heavy focus on COVID-19 could slow the approvals on non-COVID-19 therapies. Despite this, the biotech industry will likely see promising sales growth over the next five years as it usually takes at least five years for new drugs to reach peak sales levels. Approval activity has also been on the rise recently. Mergers and acquisitions activity is expected to remain low as a more activist Federal Trade Commission (led by Lina Khan) could be more skeptical of proposed mergers. Year to date through June 30, the S&P 1500 Biotech Index was down 1.6%, vs. a 20.5% decline for the S&P 1500 Composite Index. In 2021, the Biotech Index rose 8.2%, vs. a 26.7% gain for the Composite Index.

Why Focus on Undervalued Biotechnology & Medical Research Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Biotechnology & Medical Research Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Biotechnology & Medical Research industry for Tuesday, December 05, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the Biotechnology & Medical Research industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Clearmind Medicine Inc’s Value Grade

Value Grade:

Clearmind Medicine Inc. is a Canada-based psychedelic pharmaceutical biotech company. The Company is focused on the discovery and development of novel psychedelic-derived therapeutics to solve widespread and underserved health problems, including alcohol use disorders. The Company’s intellectual portfolio consists of fourteen patent families. The Company's portfolio consists of patent families, such as alcoholic beverage substitute and binge behavior regulators.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Clearmind Medicine Inc has a Value Score of 75, which is considered to be undervalued.

Now, let’s assess Clearmind Medicine Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 0.3, when compared to the industry median of 0.8, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Clearmind Medicine Inc’s shareholder yield is lower than its industry median ratio of (10.50%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Clearmind Medicine Inc’s price-to-book ratio is lower than its industry median ratio of 1.57. This could make Clearmind Medicine Inc more attractive to investors looking for a new addition to their portfolio.

Enzo Biochem Inc’s Value Grade

Value Grade:

Enzo Biochem, Inc. is focused on molecular diagnostics and has a portfolio of technical platforms and reagent sets supporting a diverse range of biomedical research and translational science needs. The Company operates through the product segment, which manufactures, develops and markets products and tools for clinical research, translational research, drug development and bioscience research customers worldwide. The Company is engaged in product development and manufactures and supplies a comprehensive portfolio of products, including antibodies, genomic probes, assays, biochemicals and proteins. The Company's products and technologies are used in translational research and drug development areas, including cell biology, genomics, assays, immunohistochemistry and small molecule chemistry. Its life science division supports the work of research centers and industry partners. It has built a portfolio of intellectual property assets, comprised of around 457 owned patents worldwide.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Enzo Biochem Inc has a Value Score of 73, which is considered to be undervalued.

Enzo Biochem Inc’s price-to-book ratio is higher than its peers. This could make Enzo Biochem Inc less attractive for value investors when compared to the industry median at 1.57.

You can read more about Enzo Biochem Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

MEI Pharma Inc’s Value Grade

Value Grade:

MEI Pharma, Inc. is a clinical-stage pharmaceutical company, which is engaged in developing novel and differentiated cancer therapies. Its drug candidate pipeline includes Voruciclib, an oral cyclin-dependent kinase 9 (CDK9) inhibitor, and ME-344, an intravenous small molecule mitochondrial inhibitor targeting the oxidative phosphorylation pathway. Voruciclib is a potent and selective orally administered CDK9 inhibitor. Voruciclib is being studied in a Phase 1 trial evaluating dose and schedule in patients with acute myeloid leukemia (AML) and B-cell malignancies as a single-agent, and in combination with the B-cell lymphoma 2 (BCL) inhibitor venetoclax (marketed as Venclexta) in patients with AML. ME-344 is a novel mitochondrial inhibitor drug candidate that demonstrates tumor selective activity in pre-clinical studies. It targets the OXPHOS pathway involved in the production of adenosine triphosphate (ATP).

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

MEI Pharma Inc has a Value Score of 98, which is considered to be undervalued.

MEI Pharma Inc’s price-earnings ratio is 1.0 compared to the industry median at 19.0. This means that it has a lower price relative to its earnings compared to its peers. This makes MEI Pharma Inc more attractive for value investors.

MEI Pharma Inc’s price-to-book ratio is higher than its peers. This could make MEI Pharma Inc less attractive for value investors when compared to the industry median at 1.57.

You can read more about MEI Pharma Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

PepGen Inc’s Value Grade

Value Grade:

PepGen Inc. is a biopharmaceutical company. The Company is engaged in developing a transformative oligonucleotide delivery technology and pipeline of product candidates to treat neuromuscular and neurologic diseases. Its enhanced delivery oligonucleotide (EDO), platform leverages cell-penetrating peptides to improve the uptake and activity of conjugated oligonucleotide therapeutics. The Company, through its EDO platform, is developing a pipeline of disease-modifying peptide-conjugated oligonucleotide candidates to treat a variety of degenerative neuromuscular diseases. Its lead product candidates include PGN-EDO51 and PGN-EDODM1. Its lead product candidate, PGN-EDO51, is an EDO peptide conjugated to a phosphorodiamidate morpholino oligomer (PMO) therapeutic cargo, which is developed for the treatment of duchenne muscular dystrophy (DMD) patients with mutations amenable to exon 51-skipping approach. It is also developing PGN-EDODM1, for the treatment of myotonic dystrophy type 1 (DM1).

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

PepGen Inc has a Value Score of 81, which is considered to be undervalued.

PepGen Inc’s price-to-book ratio is higher than its peers. This could make PepGen Inc less attractive for value investors when compared to the industry median at 1.57.

You can read more about PepGen Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Pulmatrix Inc’s Value Grade

Value Grade:

Pulmatrix, Inc. is a clinical-stage biopharmaceutical company, which is focused on developing inhaled therapies to address serious pulmonary diseases and central nervous system (CNS) disorders using its patented inhaled small particles easily respirable and emitted (iSPERSE) technology. Its inhaled therapeutic products based on its dry powder delivery technology, namely iSPERSE enables delivery of small or large molecule drugs to the lungs by inhalation for local or systemic applications. iSPERSE powders are engineered to be small, dense particles with dispersibility and delivery to airways. Its iSPERSE?s lead development program, PUR1900 is its inhaled formulation of itraconazole, an anti-fungal drug commercially available as an oral drug, which it is developing to treat and prevent pulmonary fungal infections. Its pipeline also includes PUR3100 for the treatment of acute migraine, and PUR1800 for the treatment of acute exacerbations of chronic obstructive pulmonary disease (AECOPD).

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Pulmatrix Inc has a Value Score of 82, which is considered to be undervalued.

Pulmatrix Inc’s price-to-book ratio is higher than its peers. This could make Pulmatrix Inc less attractive for value investors when compared to the industry median at 1.57.

You can read more about Pulmatrix Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Xenetic Biosciences Inc’s Value Grade

Value Grade:

Xenetic Biosciences, Inc. is a biopharmaceutical company. The Company is focused on advancing its immune-oncology technologies addressing hard to treat cancers. The Company's DNase platform is designed to improve outcomes of existing treatments, including immunotherapies, by targeting neutrophil extracellular traps (NETs), which are weblike structures composed of extracellular chromatin coated with histones and other proteins. The Company is also developing its personalized Chimeric Antigen Receptor (CAR) T platform technology, XCART, to develop cell-based therapeutics targeting the B-cell receptor on the surface of an individual patient?s malignant tumor cells, for the treatment of B-cell lymphomas. It is also focused on developing its proprietary drug delivery platform, PolyXen, which uses the biological polymer polysialic acid (PSA) to prolong the drug's half-life and potentially improve the stability of therapeutic peptides and proteins.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Xenetic Biosciences Inc has a Value Score of 69, which is considered to be undervalued.

Xenetic Biosciences Inc’s price-to-book ratio is higher than its peers. This could make Xenetic Biosciences Inc less attractive for value investors when compared to the industry median at 1.57.

You can read more about Xenetic Biosciences Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

XBiotech Inc’s Value Grade

Value Grade:

XBiotech Inc. is a biopharmaceutical company. The Company is engaged in advancing a pipeline of therapies by harnessing naturally occurring antibodies from patients with immunity to certain diseases. The Company develops True Human monoclonal antibodies for treating a variety of diseases. True Human monoclonal antibodies are derived from human donors that mount a natural human immune response. The Company is focused on therapies that block a potent substance known as interleukin-1 alpha (IL-1a), which mediates tissue breakdown, angiogenesis, the formation of blood clots, malaise, muscle wasting, and inflammation. IL-1a is a protein that is on or in cells of the body and is involved in the body?s response to injury or trauma, In almost all chronic and some acute injury scenarios (such as stroke or heart attack).

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

XBiotech Inc has a Value Score of 65, which is considered to be undervalued.

XBiotech Inc’s price-to-book ratio is higher than its peers. This could make XBiotech Inc less attractive for value investors when compared to the industry median at 1.57.

You can read more about XBiotech Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Biotechnology & Medical Research Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Biotechnology & Medical Research stocks as well as other industrys.

Choosing Which of the 7 Best Biotechnology & Medical Research Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Clearmind Medicine Inc stock has a Value Grade of B.
• Enzo Biochem Inc stock has a Value Grade of B.
• MEI Pharma Inc stock has a Value Grade of A.
• PepGen Inc stock has a Value Grade of A.
• Pulmatrix Inc stock has a Value Grade of A.
• Xenetic Biosciences Inc stock has a Value Grade of B.
• XBiotech Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 undervalued stocks in the Biotechnology & Medical Research industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Biotechnology & Medical Research Stocks

Want to learn more about Biotechnology & Medical Research stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Biotechnology & Medical Research Stocks for Tuesday, December 05
• Which Is a Better Investment, Qiagen NV or TG Therapeutics Inc Stock?
• 7 Undervalued Biotechnology & Medical Research Stocks for Monday, December 04
• Which Is a Better Investment, Beam Therapeutics Inc or Ideaya Biosciences Inc Stock?

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