Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Medical Equipment, Supplies & Distribution 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 Medical Equipment, Supplies & Distribution Stock News

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

There has been an increase in demand for medical devices in recent years, largely driven by process innovations, emerging technology and an aging population. In 2021, the medical equipment industry should positively benefit from coronavirus test sales, new product sales and growing exposure in emerging markets. Companies selling coronavirus tests are expected to have strong sales for the year as people return to offices and schools. There has also been progress made by vaccine campaigns. Analysts expect to see a recovery in elective procedure volumes to pre-pandemic levels, which experienced particularly harsh headwinds in 2020 due to the pandemic. As a result, hospitals likely have a backlog of deferred procedures to work through. However, recovery for the industry could be relatively impacted by the financial pressures facing consumers, which may prevent people from seeking medical attention. In the long term, analysts see positive fundamental trends for medical device manufacturers, including global demand for cost-effective value-based health care, gaining demographics and rising research and development (R&D) investments, which have resulted in a steady stream of innovative products and revenue growth.

Why Focus on Undervalued Medical Equipment, Supplies & Distribution 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.

Click the button below to learn more about A+ Investor and subscribe today.

3 Undervalued Medical Equipment, Supplies & Distribution Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Medical Equipment, Supplies & Distribution industry for Tuesday, January 30, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Medical Equipment, Supplies & Distribution 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.

Agiliti Inc’s Value Grade

Value Grade:

Agiliti, Inc. is an essential service provider to the United States healthcare industry. The Company offers healthcare providers a comprehensive suite of medical equipment management and service solutions. The Company?s gateway solutions offer an entry point to the economic buyer and include peak needs equipment, surgical lasers and equipment, specialty beds and surfaces and supplemental clinical engineering services. Its vertical solutions include clinical offerings tailored to specific patient needs and clinical engineering programs for equipment categories. The Company provides comprehensive, connected solutions through onsite managed services and outsourced clinical engineering services. It also provides comprehensive logistics, management and clinical engineering solutions that allow IDNs to manage equipment inventories across multiple locations, and supports city, state and federal government agencies in managing and maintaining equipment stockpiles.

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.

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

When you look at Agiliti Inc’s price-to-sales ratio at 0.87 compared to the industry median at 3.28, this company has a lower price relative to revenue compared to its peers. This could make Agiliti Inc’s stock more attractive for value investors.

Now, let’s assess Agiliti Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 7.2, when compared to the industry median of 15.1, 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. Agiliti Inc’s shareholder yield is higher than its industry median ratio of (1.97%). 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. Agiliti Inc’s price-to-book ratio is lower than its industry median ratio of 2.56. This could make Agiliti Inc more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Agiliti Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Agiliti Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 40.44. This could make Agiliti Inc more attractive because the lower P/FCF ratio indicates that Agiliti Inc is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

OraSure Technologies, Inc.’s Value Grade

Value Grade:

OraSure Technologies, Inc. is engaged in the development and distribution of rapid diagnostic tests, sample collection and stabilization devices, and molecular services solutions. The Company operates through two segments: the Diagnostics segment and the Molecular Solutions segment. The Diagnostics business primarily consists of the development, manufacture, marketing, and sale of simple, easy-to-use diagnostic products and specimen collection devices using its proprietary technologies, as well as other diagnostic products including immunoassays and other in vitro diagnostic tests that are used on other specimen types. The Molecular Solutions business is operated by Company's subsidiaries, DNA Genotek, Diversigen, and Novosanis. The Molecular Solutions segment products primarily consist of collection kits and services used by clinical laboratories, direct-to-consumer laboratories, researchers, pharmaceutical companies, and animal health service and product providers.

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.

OraSure Technologies, Inc. has a Value Score of 73, which is considered to be undervalued.

OraSure Technologies, Inc.’s price-earnings ratio is 11.7 compared to the industry median at 37.8. This means that it has a lower price relative to its earnings compared to its peers. This makes OraSure Technologies, Inc. more attractive for value investors.

OraSure Technologies, Inc.’s price-to-book ratio is higher than its peers. This could make OraSure Technologies, Inc. less attractive for value investors when compared to the industry median at 2.56.

You can read more about OraSure Technologies, 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.

Minerva Surgical Inc’s Value Grade

Value Grade:

Minerva Surgical, Inc. is a commercial-stage medical technology company focused on developing, manufacturing, and commercializing minimally invasive solutions to meet the distinct uterine healthcare needs of women. It has established a product line of commercially available, minimally invasive alternatives to hysterectomy, which are designed to address the most common causes of Abnormal Uterine Bleeding (AUB) in most uterine anatomies. Its Minerva Surgical solutions can be used in a variety of medical treatment settings and aim to address the drawbacks associated with alternative treatment methods and to preserve the uterus by avoiding unnecessary hysterectomies. It offers a range of solutions, such as the Minerva ES Endometrial Ablation System (Minerva ES), Genesys HTA Endometrial Ablation System (Genesys HTA), Symphion Tissue Removal System (Symphion), and Resectr Tissue Resection Device (Resectr). Minerva ES is an endometrial ablation device that utilizes its PlasmaSense technology.

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.

Minerva Surgical Inc has a Value Score of 71, which is considered to be undervalued.

Minerva Surgical Inc’s price-to-book ratio is higher than its peers. This could make Minerva Surgical Inc less attractive for value investors when compared to the industry median at 2.56.

You can read more about Minerva Surgical 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 Medical Equipment, Supplies & Distribution 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 Medical Equipment, Supplies & Distribution stocks as well as other industrys.

Choosing Which of the 3 Best Medical Equipment, Supplies & Distribution 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.

• Agiliti Inc stock has a Value Grade of B.
• OraSure Technologies, Inc. stock has a Value Grade of B.
• Minerva Surgical Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 3 undervalued stocks in the Medical Equipment, Supplies & Distribution 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 Medical Equipment, Supplies & Distribution Stocks

Want to learn more about Medical Equipment, Supplies & Distribution 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.

• 3 Undervalued Medical Equipment, Supplies & Distribution Stocks for Tuesday, January 30
• 4 Undervalued Medical Equipment, Supplies & Distribution Stocks for Monday, January 29
• Why 10X Genomics Inc’s (TXG) Stock Is Up 4.70%
• Why Atrion Corporation’s (ATRI) Stock Is Up 4.69%

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.