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 Health Care Equipment & Supplies 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 Health Care Equipment & Supplies 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 Health Care Equipment & Supplies 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 Health Care Equipment & Supplies industry for Thursday, October 10, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Health Care Equipment & Supplies 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.

Intelligent Bio Solutions Inc.’s Value Grade

Value Grade:

Intelligent Bio Solutions Inc., a medical technology company, developing rapid, non-invasive testing, and screening solutions. The company operates intelligent fingerprinting drug screening system, a platform to analyze fingerprint sweat analysis to detect drugs abuse. It also operates biosensor platform for clinical chemistry, immunology, tumor markers, hormones, and nucleic acid diagnostic modalities. The company was formerly known as GBS Inc. and changed its name to Intelligent Bio Solutions Inc. in October 2022. Intelligent Bio Solutions Inc. was incorporated in 2016 and is headquartered in New York, New York. The company operates as a subsidiary of Life Science Biosensor Diagnostics Pty Ltd.

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.

Intelligent Bio Solutions Inc. has a Value Score of 82, which is considered to be undervalued.

When you look at Intelligent Bio Solutions Inc.’s price-to-sales ratio at 0.78 compared to the industry median at 2.88, this company has a lower price relative to revenue compared to its peers. This could make Intelligent Bio Solutions 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. Intelligent Bio Solutions Inc.’s shareholder yield is higher than its industry median ratio of (2.40%). 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. Intelligent Bio Solutions Inc.’s price-to-book ratio is lower than its industry median ratio of 2.48. This could make Intelligent Bio Solutions Inc. more attractive to investors looking for a new addition to their portfolio.

OraSure Technologies, Inc.’s Value Grade

Value Grade:

OraSure Technologies, Inc., together with its subsidiaries, provides point-of-care and home diagnostic tests, specimen collection devices, and microbiome laboratory and analytical services in the United States, Europe, and internationally. The company’s products include InteliSwab COVID-19 rapid test, InteliSwab COVID-19 rapid test pro, InteliSwab COVID-19 rapid test rx, OraQuick Rapid HIV test, OraQuick In-Home HIV test, OraQuick HIV self-test, OraQuick HCV rapid antibody test, OraQuick Ebola rapid antigen test, OraSure oral fluid collection device used in conjunction with screening and confirmatory tests for HIV-1 antibodies; Intercept drug testing systems; immunoassay tests and reagents; and Q.E.D. saliva alcohol test. It also offers genomic products under the Oragene and ORAcollect brands for collecting genetic material from human saliva; Colli-Pee collection devices for the volumetric collection of void urine samples; and microbiome laboratory testing and analytical services. In addition, the company provides microbiome products, such as OMNIgene GUT for self-collecting microbial DNA from feces or stool samples for gut microbiome profiling; OMNIgene GUT DNA and RNA collection devices; and OMNIgene GUT Dx collection device for collection of human fecal samples and the stabilization of DNA from the bacterial community. Additionally, it provides other diagnostic products, such as immunoassays and other in vitro diagnostic tests. The company markets its products to clinical laboratories, hospitals, clinics, community-based organizations and other public health organizations, distributors, government agencies, physicians’ offices, commercial and industrial entities, disease risk management, diagnostics, pharmaceutical, biotech, nutrition, companion animal, and environmental markets. OraSure Technologies, Inc. was incorporated in 2000 and is based in Bethlehem, Pennsylvania.

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.

OraSure Technologies, Inc. has a Value Score of 91, which is considered to be undervalued.

OraSure Technologies, Inc.’s price-earnings ratio is 11.3 compared to the industry median at 39.6. This means that it has a lower price relative to its earnings compared to its peers. This makes OraSure Technologies, Inc. more attractive for value investors.

OraSure Technologies, Inc.’s price-to-book ratio is higher than its peers. This could make OraSure Technologies, Inc. less attractive for value investors when compared to the industry median at 2.48.

You can read more about OraSure Technologies, 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.

ReShape Lifesciences Inc.’s Value Grade

Value Grade:

ReShape Lifesciences Inc. provides products and services that manages and treat obesity and metabolic diseases in the United States, Australia, Europe, and internationally. The company’s product portfolio includes Lap-Band System, a minimally invasive long-term treatment of severe obesity and more invasive surgical stapling procedures, such as the gastric bypass or sleeve gastrectomy; Lap-Band 2.0 System, an adjustable postoperatively to increase or decrease the pressure to the band in order to optimize an individual’s comfort and therapy effectiveness; and ReShape Calibration Tubes, that fits the lesser curvature of the stomach to reach the pylorus. It is also involved in developing ReShape Obalon Balloon System, consists of a swallowable capsule that tracks and displays the location of the balloon during placement; and ReShape Diabetes Bloc-Stim Neuromodulation (DBSN) device, a technology that is in development for the treatment of type 2 diabetes mellitus. The company was formerly known as EnteroMedics Inc. and changed its name to ReShape Lifesciences Inc. in 2017. ReShape Lifesciences Inc. was incorporated in 2002 and is headquartered in Irvine, California.

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.

ReShape Lifesciences Inc. has a Value Score of 67, which is considered to be undervalued.

ReShape Lifesciences Inc.’s price-to-book ratio is higher than its peers. This could make ReShape Lifesciences Inc. less attractive for value investors when compared to the industry median at 2.48.

You can read more about ReShape Lifesciences 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.

Catheter Precision, Inc.’s Value Grade

Value Grade:

Catheter Precision, Inc. designs, manufactures, and sells medical technologies for the field of cardiac electrophysiology (EP) in the United States. The company’s lead product is View into Ventricular Onset System, a non-invasive imaging system that offers 3D cardiac mapping to help with localizing the sites of origin of idiopathic ventricular arrhythmias in patients with structurally normal hearts prior to EP procedures. It also provides LockeT, a suture retention device that temporarily secure sutures and aid clinicians in locating and removing sutures; and Amigo Remote Catheter System, a robotic arm that serves as a catheter control device. The company sells it products through distribution partners, independent sales agents, and direct employees. Catheter Precision, Inc. is based in Fort Mill, South Carolina.

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.

Catheter Precision, Inc. has a Value Score of 70, which is considered to be undervalued.

Catheter Precision, Inc.’s price-to-book ratio is higher than its peers. This could make Catheter Precision, Inc. less attractive for value investors when compared to the industry median at 2.48.

You can read more about Catheter Precision, 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 Health Care Equipment & Supplies 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 Health Care Equipment & Supplies stocks as well as other industrys.

Choosing Which of the 4 Best Health Care Equipment & Supplies 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.

• Intelligent Bio Solutions Inc. stock has a Value Grade of A.
• OraSure Technologies, Inc. stock has a Value Grade of A.
• ReShape Lifesciences Inc. stock has a Value Grade of B.
• Catheter Precision, 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 Health Care Equipment & Supplies 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 Health Care Equipment & Supplies Stocks

Want to learn more about Health Care Equipment & Supplies 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 Health Care Equipment & Supplies Stocks for Thursday, October 10
• 3 Undervalued Health Care Equipment & Supplies Stocks for Wednesday, October 09
• 7 Undervalued Health Care Equipment & Supplies Stocks for Tuesday, October 08
• 3 Undervalued Health Care Equipment & Supplies Stocks for Monday, October 07

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.