Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 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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4 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 4 undervalued stocks in the Healthcare Facilities & Services industry for Friday, September 27, 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 67, which is considered to be undervalued.

When you look at Accolade Inc’s price-to-sales ratio at 0.70 compared to the industry median at 1.15, 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 (1.66%). 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 2.29. This could make Accolade Inc more attractive to investors looking for a new addition to their portfolio.

Ethema Health Corp’s Value Grade

Value Grade:

Ethema Health Corporation, together with its subsidiaries, operates in the behavioral healthcare space specifically in the treatment of substance-use disorders. The Company offers rehabilitation services in West Palm Beach, Florida. By working with scientists, doctors and researchers, the Company strives to develop better assessment and treatment modalities for the industry. The Company focuses on developing programs and techniques for North America.

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.

Ethema Health Corp has a Value Score of 89, which is considered to be undervalued.

Ethema Health Corp’s price-earnings ratio is 4.5 compared to the industry median at 22.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Ethema Health Corp more attractive for value investors.

You can read more about Ethema Health 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.

Novo Integrated Sciences Inc’s Value Grade

Value Grade:

Novo Integrated Sciences, Inc. is a parent company to its subsidiaries. The Company owns Canadian and United States subsidiaries that provide, or intend to provide, essential and differentiated solutions to the delivery of multidisciplinary primary care and related wellness products through the integration of medical technology, interconnectivity, advanced therapeutic, diagnostic solutions, personalized product offerings, and rehabilitative science. The Company operates through two segments: Healthcare Services and Product Sales. Its specialized multidisciplinary primary healthcare services include physiotherapy, chiropractic care, manual/manipulative therapy, occupational therapy, eldercare, massage therapy, acupuncture and functional dry needling, chiropody, stroke and traumatic brain injury/neurological rehabilitation, kinesiology, vestibular therapy, dietician and others. Its subsidiaries include Novo Healthnet Limited, Novomerica Health Group, Inc., PRO-DIP, LLC 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.

Novo Integrated Sciences Inc has a Value Score of 68, which is considered to be undervalued.

Novo Integrated Sciences Inc’s price-to-book ratio is higher than its peers. This could make Novo Integrated Sciences Inc less attractive for value investors when compared to the industry median at 2.29.

You can read more about Novo Integrated Sciences 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 62, which is considered to be undervalued.

Universal Health Services, Inc.’s price-earnings ratio is 17.6 compared to the industry median at 22.7. 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. more attractive for value investors when compared to the industry median at 2.29.

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 4 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.
• Ethema Health Corp stock has a Value Grade of A.
• Novo Integrated Sciences 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 4 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.

• 4 Undervalued Healthcare Facilities & Services Stocks for Friday, September 27
• 5 Undervalued Healthcare Facilities & Services Stocks for Thursday, September 26
• Why Aveanna Healthcare Holdings Inc’s (AVAH) Stock Is Down 4.65%
• Why Pediatrix Medical Group Inc’s (MD) Stock Is Up 8.09%

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.