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 Healthcare Facilities & Services 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 Healthcare Facilities & Services 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 Healthcare Facilities & Services 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 Healthcare Facilities & Services industry for Tuesday, April 23, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Healthcare Facilities & Services 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.

AMN Healthcare Services, Inc.’s Value Grade

Value Grade:

AMN Healthcare Services, Inc. is a provider of total talent solutions for healthcare organizations across the United States. The Company provides access to a comprehensive network of quality healthcare professionals through its recruitment strategies and breadth of career opportunities. The Company’s nurse and allied solutions segment include the Company’s travel nurse staffing (including international nurse staffing and rapid response nurse staffing), labor disruption staffing, local staffing, international nurse and allied permanent placement, and allied staffing (including revenue cycle solutions) businesses. The physician and leadership solutions segment includes the Company’s locum tenens staffing, healthcare interim leadership staffing, executive search, and physician permanent placement businesses. The technology and workforce solutions segment includes the Company’s language services, vendor management systems (VMS), workforce optimization, and outsourced solutions businesses.

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.

AMN Healthcare Services, Inc. has a Value Score of 82, which is considered to be undervalued.

When you look at AMN Healthcare Services, Inc.’s price-to-sales ratio at 0.57 compared to the industry median at 1.15, this company has a lower price relative to revenue compared to its peers. This could make AMN Healthcare Services, Inc.’s stock more attractive for value investors.

AMN Healthcare Services, Inc.’s price-earnings ratio is 10.69 compared to the industry median at 22.51. This means it has a lower share price relative to earnings compared to its peers. This could make AMN Healthcare Services, Inc. more attractive for value investors.

Now, let’s assess AMN Healthcare Services, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 8.3, when compared to the industry median of 13.1, 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. AMN Healthcare Services, Inc.’s shareholder yield is higher than its industry median ratio of (2.27%). 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. AMN Healthcare Services, Inc.’s price-to-book ratio is higher than its industry median ratio of 2.06. This could make AMN Healthcare Services, Inc. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at AMN Healthcare Services, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. AMN Healthcare Services, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 21.57. This could make AMN Healthcare Services, Inc. more attractive because the lower P/FCF ratio indicates that AMN Healthcare Services, 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.

BioNexus Gene Lab Corp’s Value Grade

Value Grade:

BioNexus Gene Lab Corp., through its wholly owned subsidiary, Chemrex Corporation Sdn. Bhd., focuses on the wholesale of chemical raw material products. The Company is engaged in the sale of chemical raw materials for the manufacture of industrial, medical, appliance, aero, automotive, mechanical, and electronic industries in the Southeast Asia region. The Company is also engaged in the business of developing and providing non-invasive liquid biopsy tests for the early detection of biomarkers. Its non-invasive blood screening tests analyze changes in ribonucleic acid (RNA) to detect the risk potentiality of approximately 11 different diseases. It offers a range of fiberglass reinforced plastic (FRP) products, which include Polyester Resin SHCP 268, Polyester Resin 9509 and Polyester Resin 2802. The FRP and other raw materials it offers are used to produce a variety of goods, including handrails, bench tops, cleanroom panels, and covers for various instruments used in manufacturing.

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.

BioNexus Gene Lab Corp has a Value Score of 98, which is considered to be undervalued.

BioNexus Gene Lab Corp’s price-to-book ratio is higher than its peers. This could make BioNexus Gene Lab Corp less attractive for value investors when compared to the industry median at 2.06.

You can read more about BioNexus Gene Lab Corp’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.

Community Health Systems Inc’s Value Grade

Value Grade:

Community Health Systems, Inc. is a healthcare company. The Company, through its subsidiaries, owns or leases over 71 affiliated hospitals, with approximately 12,000 beds, and operate more than 1,000 sites of care, including physician practices, urgent care centers, freestanding emergency departments, occupational medicine clinics, imaging centers, cancer centers and ambulatory surgery centers. The Company, through its affiliates, providers of healthcare services, develops and operating healthcare delivery systems in over 40 distinct markets across 15 states. Its hospitals are general care hospitals offering a range of inpatient and outpatient medical services. These services generally include general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric and rehabilitation services. In addition, some of its hospitals provide skilled nursing and home care services based on individual community needs.

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.

Community Health Systems Inc has a Value Score of 76, which is considered to be undervalued.

You can read more about Community Health Systems 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.

Enhabit Inc’s Value Grade

Value Grade:

Enhabit, Inc. is a provider of home health and hospice services. The Company’s segments include Home Health and Hospice. The Home Health segment provides a range of Medicare-certified skilled home health services, including skilled nursing, physical, occupational and speech therapy, medical social work, and home health aide services. Its home health business benefits from a diversity of referral sources, with patients referred from acute care hospitals, inpatient rehabilitation facilities, surgery centers, assisted living facilities, and skilled nursing facilities, as well as community physicians. The Hospice segment provides hospice services for terminally ill patients and their families. Its Medicare-certified hospice operations provide hospice services, including pain and symptom management, palliative and dietary counseling, social worker visits, spiritual counseling, and family member bereavement counseling. It operates over 110 hospice agencies and 255 home health agencies.

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.

Enhabit Inc has a Value Score of 64, which is considered to be undervalued.

Enhabit Inc’s price-to-book ratio is higher than its peers. This could make Enhabit Inc less attractive for value investors when compared to the industry median at 2.06.

You can read more about Enhabit 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.

23andMe Holding Co.’s Value Grade

Value Grade:

23andMe Holding Co. is a genetics-led consumer healthcare and therapeutics company. The Company operates through two segments: Consumer & Research Services and Therapeutics. The Consumer & Research Services business segment comprises its Personal Genome Service (PGS), telehealth business, and research service. PGS services provide customers with a broad suite of genetic reports, including information on customers? genetic ancestral origins, personal genetic health risks, and chances of passing on certain rare carrier conditions to their children, as well as reports on how genetics can impact responses to medications. The Therapeutics business segment focuses on the use of genetic insights from databases of genetic and phenotypic information to develop novel therapies to improve patients? lives. The Therapeutics segment consists of out-licensing of intellectual property associated with identified drug targets and expenses related to therapeutic product candidates.

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.

23andMe Holding Co. has a Value Score of 64, which is considered to be undervalued.

23andMe Holding Co.’s price-to-book ratio is higher than its peers. This could make 23andMe Holding Co. less attractive for value investors when compared to the industry median at 2.06.

You can read more about 23andMe Holding Co.’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.

Star Equity Holdings Inc’s Value Grade

Value Grade:

Star Equity Holdings, Inc. is a diversified holding company. The Company operates through two divisions: Construction and Investments. The Construction division manufactures modular housing units for commercial and residential applications. Its Construction division operates in two businesses: modular building manufacturing, and structural wall panel and wood foundation manufacturing, including building supply retail operations. The modular building manufacturing business services the northeast United States and is operated by KBS Builders, Inc. (KBS) in Maine. The structural wall panel and wood foundation manufacturing business is operated by EdgeBuilder, Inc., and the retail building supplies are sold through Glenbrook Building Supply, Inc. (Glenbrook). Its Investments division holds its corporate-owned real estate, which includes its two manufacturing facilities in Maine that are leased to KBS and one manufacturing facility in Minnesota that is leased to Glenbrook.

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.

Star Equity Holdings Inc has a Value Score of 73, which is considered to be undervalued.

Star Equity Holdings Inc’s price-to-book ratio is higher than its peers. This could make Star Equity Holdings Inc less attractive for value investors when compared to the industry median at 2.06.

You can read more about Star Equity Holdings 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.

Oncology Institute Inc’s Value Grade

Value Grade:

The Oncology Institute, Inc. is a value-based oncology company. The Company manages community-based oncology practices which serve patients at 83 clinic locations across 15 markets and five states throughout the United States. The Company's segment includes patient services, dispensary, and clinical trials & other. Its managed clinics provide a range of medical oncology services, including physician services, in-house infusion and dispensary, radiation, programs like outpatient blood product transfusions, along with 24/7 patient support. The Company, through TOI Clinical Research, LLC (TCR), provides and manages clinical trial services and research for the benefit of cancer patients. It also provides management services to 14 clinic locations owned by independent oncology practices. The Company and its affiliated providers have contractual relationships with payors serving a variety of patients, including Medicare Advantage (MA), Medicaid, and commercial patients.

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.

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

Oncology Institute Inc’s price-to-book ratio is higher than its peers. This could make Oncology Institute Inc less attractive for value investors when compared to the industry median at 2.06.

You can read more about Oncology Institute 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 Healthcare Facilities & Services 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 Healthcare Facilities & Services stocks as well as other industrys.

Choosing Which of the 7 Best Healthcare Facilities & Services 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.

• AMN Healthcare Services, Inc. stock has a Value Grade of A.
• BioNexus Gene Lab Corp stock has a Value Grade of A.
• Community Health Systems Inc stock has a Value Grade of B.
• Enhabit Inc stock has a Value Grade of B.
• 23andMe Holding Co. stock has a Value Grade of B.
• Star Equity Holdings Inc stock has a Value Grade of B.
• Oncology Institute 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 Healthcare Facilities & Services 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 Healthcare Facilities & Services Stocks

Want to learn more about Healthcare Facilities & Services 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 Healthcare Facilities & Services Stocks for Tuesday, April 23
• 7 Undervalued Healthcare Facilities & Services Stocks for Monday, April 22
• Why Agilon Health Inc’s (AGL) Stock Is Down 5.49%
• Why Auna SAA’s (AUNA) Stock Is Down 7.35%

AAII Disclaimer

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