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.

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, March 28, 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.

Acorda Therapeutics Inc’s Value Grade

Value Grade:

Acorda Therapeutics, Inc. is a biopharmaceutical company. The Company is focused on developing therapies that restore function and enhance the lives of people with neurological disorders. The Company uses its ARCUS pulmonary delivery system, which is a technology platform designed to deliver medication through inhalation that is used in the development of a variety of inhaled medicines. The Company?s commercial products include INBRIJA (levodopa inhalation powder) and AMPYRA (dalfampridine). Inbrija is an inhaled levodopa (L-dopa) for intermittent treatment of OFF episodes, also known as OFF periods in people with Parkinson?s disease treated with carbidopa/levodopa regimen. Inbrija utilizes its ARCUS platform for inhaled therapeutics. AMPYRA (dalfampridine) is an extended-release tablet formulation of dalfampridine as a treatment to enhance walking in patients with multiple sclerosis (MS). Ampyra is marketed as Fampyra outside the United States by Biogen International GmbH.

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.

Acorda Therapeutics Inc has a Value Score of 78, which is considered to be undervalued.

When you look at Acorda Therapeutics Inc’s price-to-sales ratio at 0.13 compared to the industry median at 8.69, this company has a lower price relative to revenue compared to its peers. This could make Acorda Therapeutics Inc’s stock more attractive for value investors.

Now, let’s assess Acorda Therapeutics Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 11.6, when compared to the industry median of 1.2, the company may be considered overvalued 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. Acorda Therapeutics Inc’s shareholder yield is higher than its industry median ratio of (9.99%). 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. Acorda Therapeutics Inc’s price-to-book ratio is lower than its industry median ratio of 2.15. This could make Acorda Therapeutics Inc 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 2.15.

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.

Dermata Therapeutics Inc’s Value Grade

Value Grade:

Dermata Therapeutics, Inc. is a late-stage medical dermatology company. The Company is focused on identifying, developing, and commercializing pharmaceutical product candidates for the treatment of medical and aesthetic skin conditions and diseases. Its two product candidates, DMT310 and DMT410, both incorporate its proprietary, multifaceted, Spongilla technology to topically treat a variety of dermatological conditions. Its lead product candidate, DMT310, is intended to utilize its Spongilla technology for once weekly treatment of a variety of skin diseases, with its initial focus being the treatment of acne vulgaris, which has a United States market size of approximately 50 million patients. Its second product candidate utilizing its Spongilla technology is DMT410, its combination treatment. DMT410 is intended to consist of one treatment of its proprietary sponge powder followed by one topical application of botulinum toxin for delivery into the dermis.

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.

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

Dermata Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Dermata Therapeutics Inc less attractive for value investors when compared to the industry median at 2.15.

You can read more about Dermata 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.

Spero Therapeutics Inc’s Value Grade

Value Grade:

Spero Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on focused on identifying and developing novel treatments for rare diseases and multi-drug resistant (MDR) bacterial infections with unmet need. Its lead product candidate, SPR720, is an oral antimicrobial agent in development for the treatment of nontuberculous mycobacterial (NTM) pulmonary disease, a rare orphan disease. Its partnership-directed programs consist of tebipenem HBr and SPR206. The tebipenem HBr is designed to be the oral carbapenem-class antibiotic for use to treat certain bacterial infections that cause complicated urinary tract infections (cUTIs), including pyelonephritis, caused by certain microorganisms, in adult patients who have limited oral treatment options. SPR206 is a direct acting intravenous (IV)-administered product candidate being developed as an option to treat MDR Gram-negative bacterial infections in the hospital setting.

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.

Spero Therapeutics Inc has a Value Score of 75, which is considered to be undervalued.

Spero Therapeutics Inc’s price-earnings ratio is 4.3 compared to the industry median at 26.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Spero Therapeutics Inc more attractive for value investors.

Spero Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Spero Therapeutics Inc less attractive for value investors when compared to the industry median at 2.15.

You can read more about Spero 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.

Tharimmune Inc’s Value Grade

Value Grade:

Tharimmune, Inc. is a clinical-stage biotechnology company. The Company is engaged in developing a portfolio of therapeutic candidate for inflammatory and immunologic conditions. It has a transmucosal film product, TH104 in Phase I clinical development, two bispecific candidates and a Picobody candidate in pre-clinical development. TH104 is a transmucosal buccal film embedded with the active compound nalmefene onto a thin film which adheres inside of the mouth on the cheek and biodegrades. TH104 is an ideal product candidate for multiple liver-related and other pruritogenic inflammatory conditions. It is also developing an early-stage pipeline of novel therapeutic candidates targeting validated high value immune-oncology (IO) targets including human epidermal growth factor (EGF) receptor 2 (HER2), human EGF receptor 3 (HER3) and programmed cell death protein (PD-1). The Company is developing antibodies, including bispecific antibodies, antibody drug conjugates (ADCs) and others.

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.

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

Tharimmune Inc’s price-to-book ratio is higher than its peers. This could make Tharimmune Inc less attractive for value investors when compared to the industry median at 2.15.

You can read more about Tharimmune 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.

Voyager Therapeutics Inc’s Value Grade

Value Grade:

Voyager Therapeutics, Inc. is a biotechnology company focused on advancing neurogenetic medicines. The Company’s pipeline includes programs for Alzheimer’s disease, amyotrophic lateral sclerosis (ALS), Parkinson’s disease, and multiple other diseases of the central nervous system. Many of its programs are derived from its TRACER AAV capsid discovery platform, which is used to generate novel capsids and identify associated receptors to potentially enable high brain penetration with genetic medicines following intravenous dosing. Its pipeline of programs, all of which are in preclinical development, include Anti-Tau Antibody (VY-TAU01), SOD1 Silencing Gene Therapy Program, Tau Silencing Gene Therapy Program, Vectorized Anti-Amyloid Antibody Early Research Program, Friedreich’s Ataxia Program: VY-FXN01, GBA1 Gene Replacement Program, HD Program, and others. VY-TAU01 is for the treatment of Alzheimer’s disease. SOD1 Silencing Gene Therapy Program is for the treatment of ALS.

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.

Voyager Therapeutics Inc has a Value Score of 70, which is considered to be undervalued.

Voyager Therapeutics Inc’s price-earnings ratio is 3.2 compared to the industry median at 26.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Voyager Therapeutics Inc more attractive for value investors.

Voyager Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Voyager Therapeutics Inc less attractive for value investors when compared to the industry median at 2.15.

You can read more about Voyager 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.

Exicure Inc’s Value Grade

Value Grade:

Exicure, Inc. is an early-stage biotechnology company focused on developing nucleic acid therapies targeting ribonucleic acid against validated targets. The Company is developing nucleic acid therapies targeting ribonucleic acid (RNA) to address both genetic and non-genetic neurological disorders. Its lead program is a non-opioid pain analgesic directed against the genetically validated target SCN9A. It is engaged in discovery efforts across a range of indications and therapeutic targets, such as pain using non-opioid analgesics, as well as rare neurological genetic disorders, including Huntington's disease, Angelman Syndrome, Batten disease, spinocerebellar ataxia, and sporadic amyotrophic lateral sclerosis (ALS). The Company focuses on pursuing out-licensing opportunities for its clinical asset, cavrotolimod, as well as for its preclinical candidates, including the SCN9A program for neuropathic pain.

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.

Exicure Inc has a Value Score of 92, which is considered to be undervalued.

Exicure Inc’s price-earnings ratio is 0.5 compared to the industry median at 26.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Exicure Inc more attractive for value investors.

Exicure Inc’s price-to-book ratio is higher than its peers. This could make Exicure Inc less attractive for value investors when compared to the industry median at 2.15.

You can read more about Exicure 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.

• Acorda Therapeutics Inc stock has a Value Grade of B.
• Avalo Therapeutics Inc stock has a Value Grade of A.
• Dermata Therapeutics Inc stock has a Value Grade of B.
• Spero Therapeutics Inc stock has a Value Grade of B.
• Tharimmune Inc stock has a Value Grade of B.
• Voyager Therapeutics Inc stock has a Value Grade of B.
• Exicure Inc stock has a Value Grade of A.

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, March 28
• 7 Undervalued Biotechnology & Medical Research Stocks for Wednesday, March 27
• Why 4D Molecular Therapeutics Inc’s (FDMT) Stock Is Up 5.35%
• Why Absci Corp’s (ABSI) Stock Is Up 6.33%

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