Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Health Care Providers & 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 Health Care Providers & 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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7 Undervalued Health Care Providers & Services Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Health Care Providers & Services industry for Friday, November 08, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Health Care Providers & 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.

Acadia Healthcare Company, Inc.’s Value Grade

Value Grade:

Acadia Healthcare Company, Inc. provides behavioral healthcare services in the United States and Puerto Rico. The company develops and operates acute inpatient psychiatric facilities, specialty treatment facilities comprising residential recovery facilities and eating disorder facilities, comprehensive treatment centers, and residential treatment centers, as well as facilities offering outpatient behavioral healthcare services for the behavioral healthcare and recovery needs of communities. Acadia Healthcare Company, Inc. was founded in 2005 and is headquartered in Franklin, Tennessee.

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.

Acadia Healthcare Company, Inc. has a Value Score of 62, which is considered to be undervalued.

When you look at Acadia Healthcare Company, Inc.’s price-to-sales ratio at 1.23 compared to the industry median at 0.87, this company has a higher price relative to revenue compared to its peers. This could make Acadia Healthcare Company, Inc.’s stock less attractive for value investors.

Acadia Healthcare Company, Inc.’s price-earnings ratio is 13.80 compared to the industry median at 24.40. This means it has a lower share price relative to earnings compared to its peers. This could make Acadia Healthcare Company, Inc. more attractive for value investors.

Now, let’s assess Acadia Healthcare Company, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 10.1, when compared to the industry median of 14.1, 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. Acadia Healthcare Company, Inc.’s shareholder yield is higher than its industry median ratio of (1.10%). 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. Acadia Healthcare Company, Inc.’s price-to-book ratio is lower than its industry median ratio of 2.16. This could make Acadia Healthcare Company, Inc. more attractive to investors looking for a new addition to their portfolio.

AdaptHealth Corp.’s Value Grade

Value Grade:

AdaptHealth Corp., together with its subsidiaries, sells home medical equipment (HME), medical supplies, and home and related services in the United States. The company provides sleep therapy equipment, supplies, and related services, such as CPAP and bi-PAP services to individuals suffering from obstructive sleep apnea; medical devices and supplies, including continuous glucose monitors and insulin pumps for the treatment of diabetes; HME to patients discharged from acute care and other facilities; oxygen and related chronic therapy services in the home; and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy, and nutritional supply needs. It also offers wheelchairs, hospital beds, oxygen concentrators, CPAP masks and related supplies, wound care supplies, diabetes management supplies, wheelchair cushion accessories, orthopedic bracing, breast pumps and supplies, walkers, commodes and canes, and nutritional and incontinence supplies. The company services beneficiaries of Medicare, Medicaid, and commercial insurance payors. The company is headquartered in Plymouth Meeting, 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.

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

AdaptHealth Corp.’s price-to-book ratio is higher than its peers. This could make AdaptHealth Corp. less attractive for value investors when compared to the industry median at 2.16.

You can read more about AdaptHealth 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.

American Shared Hospital Services’s Value Grade

Value Grade:

American Shared Hospital Services provides stereotactic radiosurgery and advanced radiation therapy equipment. It operates in two segments, Medical Equipment Leasing, and Retail. The company offers radiosurgery equipment for the Gamma Knife stereotactic radiosurgery, a non-invasive procedure to treat malignant and benign brain tumors, and arteriovenous malformations, as well as for trigeminal neuralgia. It also provides financing services for Leksell Gamma Knife units; and leases medical equipment. In addition, the company offers proton beam radiation therapy services in Orlando, Florida and Long Beach, California, as well as offers planning, installation, reimbursement, and marketing support services to its customers. The company markets its solutions to cancer treatment centers, hospitals, and cancer networks worldwide. American Shared Hospital Services was founded in 1980 and is based in San Francisco, 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.

American Shared Hospital Services has a Value Score of 90, which is considered to be undervalued.

American Shared Hospital Services’s price-earnings ratio is 4.8 compared to the industry median at 24.4. This means that it has a lower price relative to its earnings compared to its peers. This makes American Shared Hospital Services more attractive for value investors.

American Shared Hospital Services’s price-to-book ratio is higher than its peers. This could make American Shared Hospital Services less attractive for value investors when compared to the industry median at 2.16.

You can read more about American Shared Hospital Services’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.

Concord Medical Services Holdings Limited’s Value Grade

Value Grade:

Concord Medical Services Holdings Limited, through its subsidiaries, operates a network of radiotherapy and diagnostic imaging centers in the People’s Republic of China. It operates in two segments, Network and Hospital. The company’s services include linear accelerators and external beam radiotherapy, proton therapy system, gamma knife radiosurgery, and diagnostic imaging services. Its other treatments and diagnostic services comprise positron emission tomography-computed tomography and magnetic resonance imaging scanners. In addition, the company provides clinical support services, such as developing treatment protocols for doctors, and organizing joint diagnosis between doctors in its network and clinical research, as well as helps to recruit and determine the compensation of doctors and other medical personnel. Further, it offers radiotherapy and diagnostic equipment leasing, management services, and premium cancer and proton treatment services to hospitals, as well as teleconsultation and medical information technology services; and sells medical equipment. Additionally, the company operates specialty cancer hospitals, which offers radiation, imaging, test laboratory, inpatient, and nursing services. Concord Medical Services Holdings Limited was founded in 1997 and is headquartered in Beijing, the People’s Republic of China.

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.

Concord Medical Services Holdings Limited has a Value Score of 98, which is considered to be undervalued.

Concord Medical Services Holdings Limited’s price-to-book ratio is higher than its peers. This could make Concord Medical Services Holdings Limited less attractive for value investors when compared to the industry median at 2.16.

You can read more about Concord Medical Services Holdings Limited’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. provides home health and hospice services in the United States. Its home health services include patient education, pain management, wound care and dressing changes, cardiac rehabilitation, infusion therapy, pharmaceutical administration, and skilled observation and assessment services; practices to treat chronic diseases and conditions, including diabetes, hypertension, arthritis, Alzheimer’s disease, low vision, spinal stenosis, Parkinson’s disease, osteoporosis, complex wound care and chronic pain, along with disease-specific plans for patients with diabetes, congestive heart failure, post-orthopedic surgery, or injury and respiratory diseases; and physical, occupational and speech therapists provide therapy services. The company offers hospice services, including pain and symptom management, palliative and dietary counseling, social worker visits, spiritual counseling, and bereavement counseling services to meet the individual physical, emotional, spiritual, and psychosocial needs of terminally ill patients and their families. The company was formerly known as Encompass Health Home Health Holdings, Inc. and changed its name to Enhabit, Inc. in March 2022. Enhabit, Inc. was founded in 1998 and is based in Dallas, Texas.

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 78, 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 2.16.

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.

Fresenius Medical Care AG’s Value Grade

Value Grade:

Fresenius Medical Care AG provides dialysis and related services for individuals with renal diseases in Germany, North America, and internationally. The company offers dialysis treatment and related laboratory and diagnostic services through a network of outpatient dialysis clinics; materials, training, and patient support services comprising clinical monitoring, follow-up assistance, and arranging for delivery of the supplies to the patient’s residence; and dialysis services under contract to hospitals in the United States for the hospitalized end-stage renal disease (ESRD) patients and for patients suffering from acute kidney failure. It also develops, manufactures, and distributes various health care products, including polysulfone dialyzers, hemodialysis machines, peritoneal dialysis cyclers, peritoneal dialysis solutions, hemodialysis concentrates, solutions and granulates, bloodlines, renal pharmaceuticals, systems for water treatment, and acute cardiopulmonary and apheresis products. In addition, the company develops, acquires, and in-licenses renal pharmaceuticals; offers renal medications and supplies to patients at homes or to dialysis clinics; and provides vascular, cardiovascular, endovascular specialty, vascular care ambulatory surgery center, and physician nephrology and cardiology services. The company sells its products to dialysis clinics, hospitals, and specialized treatment clinics directly, as well as through local sales forces, independent distributors, dealers, and sales agents. Fresenius Medical Care AG was incorporated in 1996 and is headquartered in Bad Homburg, Germany.

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.

Fresenius Medical Care AG has a Value Score of 89, which is considered to be undervalued.

Fresenius Medical Care AG’s price-earnings ratio is 8.5 compared to the industry median at 24.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Fresenius Medical Care AG more attractive for value investors.

Fresenius Medical Care AG’s price-to-book ratio is higher than its peers. This could make Fresenius Medical Care AG less attractive for value investors when compared to the industry median at 2.16.

You can read more about Fresenius Medical Care AG’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.

Humana Inc.’s Value Grade

Value Grade:

Humana Inc., together with its subsidiaries, provides medical and specialty insurance products in the United States. It operates through two segments, Insurance and CenterWell. The company offers medical and supplemental benefit plans to individuals. It has a contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits. In addition, the company provides commercial fully-insured medical and specialty health insurance benefits comprising dental, vision, life insurance, and other supplemental health benefits, as well as administrative services only products to individuals and employer groups; military services, such as TRICARE T2017 East Region contract; and engages in the operations of pharmacy benefit manager business. Further, it operates pharmacies and senior focused primary care centers; and offers home solutions services, such as home health, hospice, and other services to its health plan members, as well as to third parties. The company sells its products through employers and employees, independent brokers and agents, sales representatives, and digital insurance agencies. The company was formerly known as Extendicare Inc. and changed its name to Humana Inc. in April 1974. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky.

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.

Humana Inc. has a Value Score of 62, which is considered to be undervalued.

Humana Inc.’s price-earnings ratio is 25.7 compared to the industry median at 24.4. This means that it has a higher price relative to its earnings compared to its peers. This makes Humana Inc. less attractive for value investors.

Humana Inc.’s price-to-book ratio is higher than its peers. This could make Humana Inc. less attractive for value investors when compared to the industry median at 2.16.

You can read more about Humana 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 Providers & 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 Health Care Providers & Services stocks as well as other industrys.

Choosing Which of the 7 Best Health Care Providers & 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.

• Acadia Healthcare Company, Inc. stock has a Value Grade of B.
• AdaptHealth Corp. stock has a Value Grade of A.
• American Shared Hospital Services stock has a Value Grade of A.
• Concord Medical Services Holdings Limited stock has a Value Grade of A.
• Enhabit, Inc. stock has a Value Grade of B.
• Fresenius Medical Care AG stock has a Value Grade of A.
• Humana Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 undervalued stocks in the Health Care Providers & 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 Health Care Providers & Services Stocks

Want to learn more about Health Care Providers & 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.

• 7 Undervalued Health Care Providers & Services Stocks for Friday, November 08
• 5 Undervalued Health Care Providers & Services Stocks for Thursday, November 07
• 5 Undervalued Health Care Providers & Services Stocks for Wednesday, November 06
• 6 Undervalued Health Care Providers & Services Stocks for Tuesday, November 05

AAII Disclaimer

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