Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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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6 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 6 undervalued stocks in the Health Care Equipment & Supplies industry for Friday, October 11, 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.

Kewaunee Scientific Corporation’s Value Grade

Value Grade:

Kewaunee Scientific Corporation designs, manufactures, and installs laboratory, healthcare, and technical furniture and infrastructure products. The company operates through two segments: Domestic and International. Its products include steel and wood casework, fume hoods, adaptable modular systems, moveable workstations, stand-alone benches, biological safety cabinets, and epoxy resin work surfaces and sinks. The company’s laboratory products are used in chemistry, physics, biology, and other general science laboratories in the pharmaceutical, biotechnology, industrial, chemical, commercial, educational, government, and health care markets; and technical products are used in facilities manufacturing computers and light electronics and by users of computer and networking furniture. It sells its products primarily through dealers, its subsidiaries, and a national stocking distributor. The company was founded in 1906 and is headquartered in Statesville, North 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.

Kewaunee Scientific Corporation has a Value Score of 88, which is considered to be undervalued.

When you look at Kewaunee Scientific Corporation’s price-to-sales ratio at 0.46 compared to the industry median at 2.90, this company has a lower price relative to revenue compared to its peers. This could make Kewaunee Scientific Corporation’s stock more attractive for value investors.

Kewaunee Scientific Corporation’s price-earnings ratio is 5.20 compared to the industry median at 39.00. This means it has a lower share price relative to earnings compared to its peers. This could make Kewaunee Scientific Corporation more attractive for value investors.

Now, let’s assess Kewaunee Scientific Corporation’s EV/EBITDA ratio, also known as enterprise multiple. At 5.8, when compared to the industry median of 18.8, 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. Kewaunee Scientific Corporation’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. Kewaunee Scientific Corporation’s price-to-book ratio is lower than its industry median ratio of 2.43. This could make Kewaunee Scientific Corporation more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Kewaunee Scientific Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Kewaunee Scientific Corporation’s price-to-free-cash-flow ratio is lower than its industry median ratio of 32.60. This could make Kewaunee Scientific Corporation more attractive because the lower P/FCF ratio indicates that Kewaunee Scientific Corporation 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.

Nuwellis, Inc.’s Value Grade

Value Grade:

Nuwellis, Inc., a medical device company, develops, manufactures, and commercializes medical devices used in ultrafiltration therapy. The company offers Aquadex FlexFlow and Aquadex SmartFlow systems, which are used to treat patients suffering from fluid overload due to heart failure. Its Aquadex FlexFlow system includes a console, disposable blood circuit set, and disposable catheter. The company sells its products to hospitals and clinics through its direct salesforce in the United States; and through independent specialty distributors in Austria, Belarus, Brazil, Colombia, the Czech Republic, Germany, Greece, Hong Kong, India, Israel, Italy, Panama, Romania, Singapore, Slovakia, Spain, Switzerland, Thailand, the United Arab Emirates, and the United Kingdom. The company was formerly known as CHF Solutions, Inc. and changed its name to Nuwellis, Inc. in April 2021. Nuwellis, Inc. was founded in 1999 and is headquartered in Eden Prairie, Minnesota.

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.

Nuwellis, Inc. has a Value Score of 89, which is considered to be undervalued.

Nuwellis, Inc.’s price-to-book ratio is higher than its peers. This could make Nuwellis, Inc. less attractive for value investors when compared to the industry median at 2.43.

You can read more about Nuwellis, 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.

Outset Medical, Inc.’s Value Grade

Value Grade:

Outset Medical, Inc., a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables. It also provides Tablo Data Ecosystem, including TabloHub, a customer-facing portal; MyTablo, a patient-facing portal; and TabloDash, an internal data analytics platform. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, 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.

Outset Medical, Inc. has a Value Score of 82, 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 2.43.

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.

Talis Biomedical Corporation’s Value Grade

Value Grade:

Talis Biomedical Corporation operates as a molecular diagnostic company, focusing on developing medical devices for infectious diseases and other conditions at the point of care in the United States. Talis Biomedical Corporation was incorporated in 2013 and is headquartered in Chicago, Illinois.

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.

Talis Biomedical Corporation has a Value Score of 71, which is considered to be undervalued.

Talis Biomedical Corporation’s price-to-book ratio is higher than its peers. This could make Talis Biomedical Corporation less attractive for value investors when compared to the industry median at 2.43.

You can read more about Talis Biomedical Corporation’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 69, 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 2.43.

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.

Xylo Technologies Ltd’s Value Grade

Value Grade:

Xylo Technologies Ltd, a technology-based company, provides medical-related devices and products in the United States, Europe, Asia, Israel, and internationally. The company operates through Corporate, E-commerce, Online Advertising & Internet Traffic Routing, Online Event Management, and Others segments. It offers Medigus Ultrasonic Surgical Endostapler, an endoscopy system, which is used for the treatment of gastroesophageal reflux disease. The company also develops biological gels to protect patients against biological threats and reduce the intrusion of allergens and viruses through the upper airways and eye cavities. In addition, it provides digital advertising platform; and operates online stores for the sale of various consumer products on the Amazon online marketplace, as well as an online event management and ticketing platform. Further, the company develops wireless vehicle battery charging technologies and modular electronic vehicles. The company was formerly known as Medigus Ltd. and changed its name to Xylo Technologies Ltd in April 2024. Xylo Technologies Ltd was incorporated in 1999 and is headquartered in Tel Aviv-Yafo, Israel.

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 has a Value Score of 86, which is considered to be undervalued.

Xylo Technologies Ltd’s price-to-book ratio is higher than its peers. This could make Xylo Technologies Ltd less attractive for value investors when compared to the industry median at 2.43.

You can read more about Xylo Technologies Ltd’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 6 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.

• Kewaunee Scientific Corporation stock has a Value Grade of A.
• Nuwellis, Inc. stock has a Value Grade of A.
• Outset Medical, Inc. stock has a Value Grade of A.
• Talis Biomedical Corporation stock has a Value Grade of B.
• Catheter Precision, Inc. stock has a Value Grade of B.
• Xylo Technologies Ltd stock has a Value Grade of A.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Health Care Equipment & Supplies Stocks for Friday, October 11
• 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

AAII Disclaimer

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