Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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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6 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 6 undervalued stocks in the Biotechnology & Medical Research industry for Thursday, February 01, 2024. 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.

Amarin Corporation plc (ADR)’s Value Grade

Value Grade:

Amarin Corporation PLC is a pharmaceutical company. The Company is focused on the commercialization and development of therapeutics to improve cardiovascular (CV), health and reduce CV risk. The Company operates through the development and commercialization of VASCEPA. Its lead product, Vascepa (icosapent ethyl) capsule is used as an adjunct to diet to reduce triglyceride levels in adult patients with severe hypertriglyceridemia. This indication for Vascepa, known as the MARINE indication, is based primarily on the results from the MARINE study of Vascepa in this approved patient population. The Company sells Vascepa principally to wholesalers, as well as selected regional wholesalers and specialty pharmacy providers, or collectively, its distributors, which in turn resell Vascepa to retail pharmacies for resale to patients and healthcare 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.

Amarin Corporation plc (ADR) has a Value Score of 62, which is considered to be undervalued.

When you look at Amarin Corporation plc (ADR)’s price-to-sales ratio at 1.43 compared to the industry median at 7.65, this company has a lower price relative to revenue compared to its peers. This could make Amarin Corporation plc (ADR)’s stock more attractive for value investors.

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. Amarin Corporation plc (ADR)’s shareholder yield is higher than its industry median ratio of (10.30%). 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. Amarin Corporation plc (ADR)’s price-to-book ratio is lower than its industry median ratio of 1.80. This could make Amarin Corporation plc (ADR) more attractive to investors looking for a new addition to their portfolio.

Avalo Therapeutics Inc’s Value Grade

Value Grade:

Avalo Therapeutics, Inc. is a clinical-stage biotechnology company. The Company is focused on the treatment of immune dysregulation by developing therapies that target the Lymphotoxin-like, exhibits Inducible expression, and competes with Herpes Virus Glycoprotein D for Herpesvirus Entry Mediator (HVEM), a receptor expressed by T lymphocytes (LIGHT)-signaling network. It is focused on advancing a pipeline that emphasizes high value potential first-in-class biologics focused on dysregulated inflammation through the LIGHT-signaling network. Its pipeline includes AVTX-002, and AVTX-008. AVTX-002 is an Anti-LIGHT monoclonal antibody for treatment of non-eosinophilic asthma, Crohn’s Disease, and COVID-19 acute respiratory distress syndromes. AVTX-008 is a fully human B and T lymphocyte attenuator (BTLA) agonist fusion protein that is being evaluated for several immune dysregulation disorders.

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.

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

Avalo Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Avalo Therapeutics Inc less attractive for value investors when compared to the industry median at 1.80.

You can read more about Avalo 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.

Cyteir Therapeutics Inc’s Value Grade

Value Grade:

Cyteir Therapeutics, Inc. is a clinical-stage biotechnology company. The Company is focused on developing of CYT-0851, an oral investigational drug candidate that inhibits monocarboxylate transporters. CYT-0851 is an investigational monocarboxylate transporter inhibitor (MCT) inhibitor, initially evaluated in a phase I/II study to treat patients with hematologic malignancies and solid tumors as a monotherapy and in combination with standard of care therapies. Inhibiting MCT function in glycolytic cancer cells leads to an accumulation of intracellular lactate that impairs glycolysis and inhibits tumor cell growth, making MCTs an attractive target for cancer therapy. Its CYT-0851 is also in development in combination with capecitabine and gemcitabine in a Phase I/II clinical study, including patients with advanced ovarian cancer.

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.

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

Cyteir Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Cyteir Therapeutics Inc less attractive for value investors when compared to the industry median at 1.80.

You can read more about Cyteir 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.

Notable Labs Ltd’s Value Grade

Value Grade:

Notable Labs Ltd, formerly Vascular Biogenics Ltd, is an Israel-based clinical-stage biopharmaceutical company committed to developing next-generation, targeted medicines for difficult-to-treat medical conditions. The Company has created a pipeline of therapeutics that address cancer and immune-inflammatory diseases with the goal of significantly improving patient outcomes and overcoming the limitations of approved treatments. The Company's product candidates are built off of two platform technologies: Vascular Targeting System (VTS), a gene-based technology targeting newly formed blood vessels, and Monocyte Targeting Technology (MTT), an antibody-based technology able to specifically inhibit monocyte migration for immune-inflammatory applications.

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.

Notable Labs Ltd has a Value Score of 96, which is considered to be undervalued.

Notable Labs Ltd’s price-to-book ratio is higher than its peers. This could make Notable Labs Ltd less attractive for value investors when compared to the industry median at 1.80.

You can read more about Notable Labs Ltd’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 71, which is considered to be undervalued.

PepGen Inc’s price-to-book ratio is lower than its peers. This could make PepGen Inc more attractive for value investors when compared to the industry median at 1.80.

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.

Pieris Pharmaceuticals Inc’s Value Grade

Value Grade:

Pieris Pharmaceuticals, Inc. is a clinical-stage biotechnology company that discovers and develops Anticalin-based drugs to target validated disease pathways. The Company?s clinical pipeline includes an inhaled IL-4Ra antagonist Anticalin protein to treat asthma, an immuno-oncology (IO), bispecific targeting HER2 and 4-1BB, and an IO bispecific targeting PD-L1 and 4-1BB. Its lead respiratory Anticalin based drug candidate, elarekibep, antagonizes IL-4Ra, thereby inhibiting IL-4 and IL-13, two cytokines, which are small proteins mediating signaling between cells within the human body, known to be key mediators in the inflammatory cascade that drive the pathogenesis of asthma and other inflammatory diseases. Its IO portfolio also includes additional drug candidates beyond PRS-344/S095012 that are multi-specific Anticalin-based fusion proteins designed to engage immunomodulatory targets, comprising a variety of multifunctional biotherapeutics.

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.

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

Pieris Pharmaceuticals Inc’s price-to-book ratio is higher than its peers. This could make Pieris Pharmaceuticals Inc less attractive for value investors when compared to the industry median at 1.80.

You can read more about Pieris Pharmaceuticals 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 6 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.

• Amarin Corporation plc (ADR) stock has a Value Grade of B.
• Avalo Therapeutics Inc stock has a Value Grade of A.
• Cyteir Therapeutics Inc stock has a Value Grade of A.
• Notable Labs Ltd stock has a Value Grade of A.
• PepGen Inc stock has a Value Grade of B.
• Pieris Pharmaceuticals Inc stock has a Value Grade of A.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Biotechnology & Medical Research Stocks for Thursday, February 01
• 7 Undervalued Biotechnology & Medical Research Stocks for Wednesday, January 31
• Is CG Oncology Inc (CGON) Stock a Good Investment?
• Which Is a Better Investment, Ardelyx Inc or Merus NV Stock?

AAII Disclaimer

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