Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 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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5 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 5 undervalued stocks in the Healthcare Facilities & Services industry for Wednesday, August 14, 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.

Accolade Inc’s Value Grade

Value Grade:

Accolade, Inc. provides personalized, technology-enabled solutions that help people understand, navigate, and utilize the healthcare system and their workplace benefits. Its customers are primarily employers that deploy Accolade solutions in order to provide employees and their families with a single place to turn for their health, healthcare, and benefits needs. It also offers medical opinion services to commercial customers and virtual primary care and mental health support. Its platform, True Health Engine, combines open, cloud-based intelligent technology with multimodal support from a team of empathetic and knowledgeable Accolade Health Assistants and clinicians, including registered nurses, physician medical directors, pharmacists, behavioral health specialists, women’s health specialists, case management specialists, expert medical opinion providers, and virtual primary care physicians. Its offerings include Accolade Expert MD, Accolade Care, Plus and Connect and Accolade One.

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.

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

When you look at Accolade Inc’s price-to-sales ratio at 0.73 compared to the industry median at 1.11, this company has a lower price relative to revenue compared to its peers. This could make Accolade Inc’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. Accolade Inc’s shareholder yield is lower than its industry median ratio of (1.36%). 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. Accolade Inc’s price-to-book ratio is lower than its industry median ratio of 2.31. This could make Accolade Inc more attractive to investors looking for a new addition to their portfolio.

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 81, which is considered to be undervalued.

AMN Healthcare Services, Inc.’s price-earnings ratio is 14.2 compared to the industry median at 22.2. This means that it has a lower price relative to its earnings compared to its peers. This makes AMN Healthcare Services, Inc. more attractive for value investors.

AMN Healthcare Services, Inc.’s price-to-book ratio is lower than its peers. This could make AMN Healthcare Services, Inc. more attractive for value investors when compared to the industry median at 2.31.

You can read more about AMN Healthcare Services, 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 62, 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 2.31.

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.

HCA Healthcare Inc’s Value Grade

Value Grade:

HCA Healthcare, Inc. is a health care services company. The Company owns, manages or operates hospitals, freestanding surgery centers, freestanding emergency care facilities, urgent care facilities, walk-in clinics, diagnostic and imaging centers, radiation and oncology therapy centers, comprehensive rehabilitation and physical therapy centers, physician practices, home health, hospice, outpatient physical therapy home and community-based services providers, and various other facilities. It also operates outpatient health care facilities, which include freestanding ambulatory surgery centers (ASCs), freestanding emergency care facilities, urgent care facilities, walk-in clinics, diagnostic and imaging centers, comprehensive rehabilitation and physical therapy centers, radiation and oncology therapy centers, physician practices and other facilities. It operates about 186 hospitals, comprised of 178 general, acute care hospitals, six behavioral hospitals and two rehabilitation hospitals.

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.

HCA Healthcare Inc has a Value Score of 61, which is considered to be undervalued.

HCA Healthcare Inc’s price-earnings ratio is 17.3 compared to the industry median at 22.2. This means that it has a lower price relative to its earnings compared to its peers. This makes HCA Healthcare Inc more attractive for value investors.

You can read more about HCA Healthcare 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.

Universal Health Services, Inc.’s Value Grade

Value Grade:

Universal Health Services, Inc. is a holding company. It operates through its subsidiaries, including its management company. It is engaged in owning and operating acute care hospitals and outpatient facilities, and behavioral healthcare facilities. Its segments include acute care hospital services, behavioral health care services, and Other. It owns and operates approximately 360 inpatient facilities and 48 outpatient and other facilities located in 39 states, Washington, D.C., the United Kingdom, and Puerto Rico. It provides services, which include general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, pediatric services, pharmacy services and/or behavioral health services. It also provides capital resources, as well as a variety of management services to its facilities, including information services, finance and control systems, facilities planning, physician recruitment services, and public relations.

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.

Universal Health Services, Inc. has a Value Score of 63, which is considered to be undervalued.

Universal Health Services, Inc.’s price-earnings ratio is 16.2 compared to the industry median at 22.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Universal Health Services, Inc. more attractive for value investors.

Universal Health Services, Inc.’s price-to-book ratio is lower than its peers. This could make Universal Health Services, Inc. fairly attractive for value investors when compared to the industry median at 2.31.

You can read more about Universal Health Services, 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 5 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.

• Accolade Inc stock has a Value Grade of B.
• AMN Healthcare Services, Inc. stock has a Value Grade of A.
• Enhabit Inc stock has a Value Grade of B.
• HCA Healthcare Inc stock has a Value Grade of B.
• Universal Health Services, Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 5 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.

• 5 Undervalued Healthcare Facilities & Services Stocks for Wednesday, August 14
• 4 Undervalued Healthcare Facilities & Services Stocks for Tuesday, August 13
• What You Need to Know About US Physical Therapy Inc's Q2 Earnings
• Why Agilon Health Inc’s (AGL) Stock Is Up 4.69%

AAII Disclaimer

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