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 Thursday, December 07, 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.

Ampio Pharmaceuticals Inc’s Value Grade

Value Grade:

Ampio Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on the preclinical development of AR-300, and is conducting studies to evaluate the efficacy of AR-300 in osteoarthritis-related pain. The Company is primarily targeting the clinical development of AR-300 for the treatment of osteoarthritis of the knee (OAK). AR-300 is a small-molecule formulation that has demonstrated anti-inflammatory properties in vitro and protection of cartilage in preclinical rat meniscal tear studies.

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.

Ampio Pharmaceuticals Inc has a Value Score of 87, which is considered to be undervalued.

Now, let’s assess Ampio Pharmaceuticals Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 0.4, 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. Ampio Pharmaceuticals Inc’s shareholder yield is higher than its industry median ratio of (10.52%). 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. Ampio Pharmaceuticals Inc’s price-to-book ratio is lower than its industry median ratio of 1.62. This could make Ampio Pharmaceuticals Inc more attractive to investors looking for a new addition to their portfolio.

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 74, which is considered to be undervalued.

Clearmind Medicine Inc’s price-to-book ratio is higher than its peers. This could make Clearmind Medicine Inc less attractive for value investors when compared to the industry median at 1.62.

You can read more about Clearmind Medicine 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.

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 74, 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 1.62.

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.

Janone Inc’s Value Grade

Value Grade:

JanOne Inc. is a clinical-stage pharmaceutical company. The Company is focused on identifying, acquiring, licensing, developing, partnering, and commercializing non-opioid and non-addictive therapies to address the large unmet medical need for the treatment of pain and addiction. Its drug candidate, JAN101, is an oral pharmaceutical composition of sodium nitrite that targets poor blood flow to the extremities, such as those with vascular complications of diabetes or Peripheral Artery Disease (PAD) and treats pain. It operates in two segments: Biotechnology and Technology. Its biotechnology segment is focused on finding treatments for conditions that cause severe pain and to market drugs with non-addictive pain-relieving properties. Its recycling segment is an appliance recycling program, which offers recycling, replacement and additional services for utility energy efficiency programs and have established 20 Regional Processing Centers (RPCs) throughout the United States and Canada.

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.

Janone Inc has a Value Score of 91, which is considered to be undervalued.

Janone Inc’s price-earnings ratio is 4.9 compared to the industry median at 20.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Janone Inc more attractive for value investors.

Janone Inc’s price-to-book ratio is higher than its peers. This could make Janone Inc less attractive for value investors when compared to the industry median at 1.62.

You can read more about Janone 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.

Inotiv Inc’s Value Grade

Value Grade:

Inotiv, Inc. is an international contract research company that is providing nonclinical and analytical drug discovery and development services to the pharmaceutical and medical device industries and selling a range of research-quality animals and diets to the same industries as well as academia and government clients. Its products and services focus on bringing new drugs and medical devices through the discovery and preclinical phases of development. It operates through two segments: Discovery and Safety Assessment (DSA) and Research Models and Services (RMS). Its DSA segment supports the discovery, nonclinical development, and clinical development needs of researchers and clinicians for primarily small molecule drug candidates, as well as biotherapeutics and biomedical devices. Its RMS segment offers access to a range of small and large research models for basic research and drug discovery and development, as well as specialized models for specific diseases and therapeutic areas.

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.

Inotiv Inc has a Value Score of 85, which is considered to be undervalued.

Inotiv Inc’s price-to-book ratio is higher than its peers. This could make Inotiv Inc less attractive for value investors when compared to the industry median at 1.62.

You can read more about Inotiv 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.

Personalis Inc’s Value Grade

Value Grade:

Personalis, Inc. is a cancer genomics company, which is engaged in providing precision cancer therapies and diagnostics. The Company?s advanced genomic sequencing and analytics support the development of personalized cancer vaccines and other next generation cancer immunotherapies. The NeXT platform is a next generation sequencing and analysis platform. The NeXT platform is designed to provide comprehensive analysis of both a tumor and its immune microenvironment from a single limited tissue or plasma sample. Its products are designed to detect recurrence at the earliest timepoints, enable selection of targeted therapies based on ultra-comprehensive genomic profiling, and enhance biomarker strategy for drug development. Its research-focused products include exome sequencing, transcriptome sequencing, and targeted cancer panels. The Company?s platform analyses elements of the immune cells that have infiltrated a tumor both from the adaptive immune system and the innate immune system.

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.

Personalis Inc has a Value Score of 83, which is considered to be undervalued.

Personalis Inc’s price-to-book ratio is higher than its peers. This could make Personalis Inc less attractive for value investors when compared to the industry median at 1.62.

You can read more about Personalis 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.

Sangamo Therapeutics Inc’s Value Grade

Value Grade:

Sangamo Therapeutics, Inc. is a clinical-stage genomic medicine company. The Company focuses on leveraging its optimized zinc finger (ZF) technology, which is a differentiated tool used to develop genomic medicines, including allogeneic cell therapies and in vivo genome engineering therapies. Its product candidates include Isaralgagene civaparvovec, also known as ST-920, its wholly owned gene therapy product candidate for the treatment of Fabry disease; TX200, its wholly owned Chimeric Antigen Receptor (CAR), engineered regulatory T cell (CAR-Treg) cell therapy product candidate for the prevention of immune-mediated rejection in HLA-A2 mismatched kidney transplantation; Giroctocogene fitelparvovec, also known as SB-525, is a gene therapy product candidate for the treatment of moderately severe to severe hemophilia A., and BIVV003, its zinc finger nuclease, or ZF nuclease, gene-edited cell therapy product candidate for the treatment of sickle cell disease (SCD).

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.

Sangamo Therapeutics Inc has a Value Score of 69, which is considered to be undervalued.

Sangamo Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Sangamo Therapeutics Inc less attractive for value investors when compared to the industry median at 1.62.

You can read more about Sangamo Therapeutics 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.

• Ampio Pharmaceuticals Inc stock has a Value Grade of A.
• Clearmind Medicine Inc stock has a Value Grade of B.
• Enzo Biochem Inc stock has a Value Grade of B.
• Janone Inc stock has a Value Grade of A.
• Inotiv Inc stock has a Value Grade of A.
• Personalis Inc stock has a Value Grade of A.
• Sangamo Therapeutics 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 Thursday, December 07
• 7 Undervalued Biotechnology & Medical Research Stocks for Wednesday, December 06
• Why 4D Molecular Therapeutics Inc’s (FDMT) Stock Is Up 5.01%
• Why ACADIA Pharmaceuticals Inc’s (ACAD) Stock Is Down 4.08%

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