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 Advanced Medical Equipment & Technology 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 Advanced Medical Equipment & Technology 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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3 Undervalued Advanced Medical Equipment & Technology 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 Advanced Medical Equipment & Technology industry for Tuesday, September 10, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Advanced Medical Equipment & Technology 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.

Aethlon Medical, Inc.’s Value Grade

Value Grade:

Aethlon Medical, Inc. is a medical therapeutic company focused on developing the Hemopurifier, a clinical-stage immunotherapeutic device which is designed to combat cancer and life-threatening viral infections and for use in organ transplantation. The Hemopurifier, in pre-clinical studies, has demonstrated the removal of harmful exosomes from biological fluids, utilizing its lectin-based technology. The Hemopurifier is a United States Food and Drug Administration (FDA) designated Breakthrough Device indicated for the treatment of individuals with advanced or metastatic cancer who are either unresponsive to or intolerant of standard of care therapy, and with cancer types in which exosomes have been shown to participate in the development or severity of the disease. The Hemopurifier also holds an FDA Breakthrough Device designation and an open Investigational Device Exemption application related to the treatment of life-threatening viruses that are not addressed with approved therapies.

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.

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

Now, let’s assess Aethlon Medical, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 0.5, when compared to the industry median of 19.3, 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. Aethlon Medical, Inc.’s shareholder yield is lower than its industry median ratio of (3.43%). 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. Aethlon Medical, Inc.’s price-to-book ratio is lower than its industry median ratio of 2.03. This could make Aethlon Medical, Inc. more attractive to investors looking for a new addition to their portfolio.

Outset Medical Inc’s Value Grade

Value Grade:

Outset Medical, Inc. is a medical technology company. The Company offers Tablo Hemodialysis System (Tablo), which is a single enterprise solution for hemodialysis, comprised of a compact console with integrated water purification, on-demand dialysate production and advanced software and connectivity capabilities. The Company designed Tablo from the ground up to be a single enterprise solution that can be utilized across the continuum of care, allowing dialysis to be delivered anytime, anywhere and by virtually anyone. The Tablo system comprises components, which include Tablo Console, Tablo Cartridge and Tablo Data Ecosystem. Tablo Console is a compact, mobile and versatile machine consisting of an integrated water purification, on-demand dialysate production system and touchscreen interface with 3D animations. It also offers various key platforms, such as TabloHub, a customer-facing portal; MyTablo, a patient-facing portal, and TabloDash, an internal data analytics platform.

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.

Outset Medical Inc has a Value Score of 83, which is considered to be undervalued.

Outset Medical Inc’s price-to-book ratio is higher than its peers. This could make Outset Medical Inc less attractive for value investors when compared to the industry median at 2.03.

You can read more about Outset Medical 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.

Xylo Technologies Ltd - ADR’s Value Grade

Value Grade:

Xylo Technologies Ltd, formerly known ad Medigus Ltd, is an Israel-based medical device company specializing in developing minimally invasive endosurgical tools and imaging solutions across medical and industrial applications. The Company developed a range of micro video cameras under micro ScoutCam portfolio of products and the Medigus Ultrasonic Surgical Endostapler, or MUSE system endoscopic device for the treatment of gastroesophageal reflux disease (GERD).

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.

Xylo Technologies Ltd - ADR has a Value Score of 100, which is considered to be undervalued.

Xylo Technologies Ltd - ADR’s price-to-book ratio is higher than its peers. This could make Xylo Technologies Ltd - ADR less attractive for value investors when compared to the industry median at 2.03.

You can read more about Xylo Technologies Ltd - ADR’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 Advanced Medical Equipment & Technology 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 Advanced Medical Equipment & Technology stocks as well as other industrys.

Choosing Which of the 3 Best Advanced Medical Equipment & Technology 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.

• Aethlon Medical, Inc. stock has a Value Grade of B.
• Outset Medical Inc stock has a Value Grade of A.
• Xylo Technologies Ltd - ADR stock has a Value Grade of A.

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

Want to learn more about Advanced Medical Equipment & Technology 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 Advanced Medical Equipment & Technology Stocks for Tuesday, September 10
• 3 Undervalued Advanced Medical Equipment & Technology Stocks for Monday, September 09
• Why Irhythm Technologies Inc’s (IRTC) Stock Is Up 4.14%
• Why Varex Imaging Corp’s (VREX) Stock Is Down 11.43%

AAII Disclaimer

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