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 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.

Latest Advanced Medical Equipment & Technology Stock News

Before choosing which top Advanced Medical Equipment & Technology stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

We have a positive fundamental outlook for the life sciences tools & services (LSTS) sub-industry for the next year. In 2021, we expect adjusted EPS growth to rise by mid to high teens, reversing the subpar growth seen in 2020, assuming a healthier economic environment globally. We expect R&D spending to continue to improve during 2021 as we are seeing most of the clinical research that was put on hold resuming. We expect the increase in demand for Covid-19 testing and related products and services to remain until the pandemic is fully under control globally and continue to be a considerable tailwind for a number of LSTS companies. Risk factors we see are slower biopharma R&D spending growth and prolonged uncertainty in certain parts of the world due to Covid-19 as new variants of the virus emerged. The National Institutes of Health (NIH) budget has been growing over the last three years, increasing funding for academic and government labs. This in turn helps drive sales growth for many LSTS companies that supply these labs. The NIH budget for fiscal 2021 (Sep.) rose 3.0%, which is lower than 5.9% for fiscal 2020 and 5.4% growth for fiscal 2019. Yet, the NIH budget grew at a CAGR of 5.8% from 2016 through 2021, a sharp increase from the flat budget growth from 2012 through 2015. The Covid-19 pandemic had a considerable impact on the sub-industry in 2020 due to the moderation in biopharma R&D spending, disruptions in clinical sites accessibility, slowdown in patient enrollments for clinical studies, and a decline in the demand for large-scale life sciences equipment with investments delayed. Yet, we saw gradual improvement throughout 2020 and a solid recovery in Q1, as countries re-opened and operations resumed with a faster-thananticipated recovery in Asia (especially China) as a result of pent-up demand, in our view. Yet, despite the increased pace of Covid-19 vaccinations in the U.S., with the emergence of new more dangerous variants and the slower pace of vaccinations in the rest of the world, the speed and sustainability of the recovery remain unclear, in our view.

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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7 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 7 undervalued stocks in the Advanced Medical Equipment & Technology industry for Thursday, December 29, 2022. 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.

Dynatronics Corp’s Value Grade

Value Grade:

Dynatronics Corporation is a medical device company that is focused on providing restorative products. The Company designs, manufactures, and sells a range of products for clinical use in physical therapy, rehabilitation, pain management, and athletic training. The Company’s products include BODYICE cold pack wraps, DELUXE BODYICE, DYNAFLEX foam, DYNAFLEX spun lace, DYNAFLEX brown electrodes, DYNAGEL ultrasound gel, DYNAHEAT custom terry covers (foam filled), DYNAHEAT moist hot packs, DYNATRON 125 ultrasound, DYNATRON SOLARIS plus lead wires, and DYNATRON SOLARIS PLUS THERMOSTIM probe. Through its distribution channels, the Company markets and sells to orthopedists, physical therapists, chiropractors, athletic trainers, sports medicine practitioners, clinics, hospitals, and consumers. The Company products are marketed under a portfolio of brands, including Bird & Cronin, Solaris, Hausmann, Physician's Choice, and PROTEAM among 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.

Dynatronics Corp has a Value Score of 83, which is considered to be undervalued.

When you look at Dynatronics Corp’s price-to-sales ratio at 0.16 compared to the industry median at 3.67, this company has a lower price relative to revenue compared to its peers. This could make Dynatronics Corp’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. Dynatronics Corp’s shareholder yield is lower than its industry median ratio of (3.5%). 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. Dynatronics Corp’s price-to-book ratio is lower than its industry median ratio of 1.62. This could make Dynatronics Corp more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Dynatronics Corp’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Dynatronics Corp’s price-to-free-cash-flow ratio is lower than its industry median ratio of 22.6. This could make Dynatronics Corp more attractive because the lower P/FCF ratio indicates that Dynatronics Corp 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.

Neuropace Inc’s Value Grade

Value Grade:

NeuroPace, Inc. is a commercial-stage medical device company. The Company is focused on transforming the lives of people suffering from epilepsy by reducing or eliminating the occurrence of debilitating seizures. The Company’s novel and differentiated RNS System is the brain-responsive neuromodulation system that delivers personalized, real-time treatment at the seizure source. The Company’s RNS System is a platform that delivers care for patients suffering from drug-resistant epilepsy and offers a personalized solution and outcomes to the patients suffering from other brain disorders. RNS System is a device that records brain activity data and clinicians to monitor patients. RNS System monitors the brain’s electrical activity, recognizes patient-specific abnormal patterns, and delivers treatment at the seizure source. The Company’s RNS System is engaged in treating other brain disorders including depression, impulse control disorders, memory disorders, and post-traumatic stress.

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.

Neuropace Inc has a Value Score of 72, which is considered to be undervalued.

Neuropace Inc’s price-earnings ratio is 0.0 compared to the industry median at 22.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Neuropace Inc more attractive for value investors.

Neuropace Inc’s price-to-book ratio is higher than its peers. This could make Neuropace Inc less attractive for value investors when compared to the industry median at 1.62.

You can read more about Neuropace 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.

Invivo Therapeutics Holdings Corp’s Value Grade

Value Grade:

InVivo Therapeutics Holdings Corp. is a research and clinical-stage biomaterials and biotechnology company with a focus on the treatment of spinal cord injuries (SCIs). The Company's Neuro-Spinal Scaffold implant is an investigational bioresorbable polymer scaffold that is designed for implantation at the site of injury within a spinal cord. It is intended to promote appositional, or side-by-side, healing by supporting the surrounding tissue after injury, minimizing the expansion of areas of necrosis, and providing a biomaterial substrate for the body's own healing/repair processes following injury. It is composed of two biocompatible and bioresorbable polymers that are cast to form a porous investigational product: Poly lactic-co-glycolic acid and Poly-L-Lysine. Poly lactic-co-glycolic acid is a polymer that is used in resorbable sutures and provides biocompatible support for Neuro-Spinal Scaffold implants and Poly-L-Lysine is a positively charged polymer used to coat surfaces.

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.

Invivo Therapeutics Holdings Corp has a Value Score of 93, which is considered to be undervalued.

Invivo Therapeutics Holdings Corp’s price-to-book ratio is higher than its peers. This could make Invivo Therapeutics Holdings Corp less attractive for value investors when compared to the industry median at 1.62.

You can read more about Invivo Therapeutics Holdings 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.

Precipio Inc’s Value Grade

Value Grade:

Precipio, Inc. is a healthcare solutions company that is focused on cancer diagnostics. The Company is focused on developing various technologies including IV-Cell, HemeScreen and ICE-COLD-PCR (ICP). The IV-Cell is a cell culture media that addresses the problem of selective and serial culturing. IV-Cell is a media that enables culturing of all four hematopoietic cell lineages, which include myeloid cells, B-cells, T-cells and plasma cells. The diagnostic process of hematopoietic diseases involves chromosomal analysis by conducting cell-culture-based tests in a cytogenetics laboratory to imitate in-vivo conditions. HemeScreen technology was developed by the Company targeting Myeloproliferative Neoplasms (MPN), which has evolved into a suite of robust genetic diagnostic panels. ICP technology was developed at Harvard and is licensed exclusively by Dana-Farber. Its laboratory and research and development (R&D;) facilities are located in New Haven, Connecticut and Omaha.

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.

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

Precipio Inc’s price-earnings ratio is 0.0 compared to the industry median at 22.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Precipio Inc more attractive for value investors.

Precipio Inc’s price-to-book ratio is higher than its peers. This could make Precipio Inc less attractive for value investors when compared to the industry median at 1.62.

You can read more about Precipio 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.

RA Medical Systems Inc’s Value Grade

Value Grade:

Ra Medical Systems, Inc. is a medical device company that leverages its excimer laser-based platform for use in the treatment of vascular immune-mediated inflammatory diseases. The Company's excimer laser and single-use catheter system, Destruction of Arteriosclerotic Blockages by laser Radiation Ablation (DABRA), is used as a tool in the treatment of peripheral artery disease (PAD), which commonly occurs in the legs. DABRA is used by physicians as a tool in the endovascular treatment of vascular blockages resulting from lower extremity vascular disease, a form of PAD, both above- and below-the-knee. DABRA breaks down plaque to proteins, lipids, and other chemical compounds, thereby eliminating blockages. DABRA is predominantly used as an adjunct therapy with angioplasty balloons, drug-coated balloons, stents, and other endovascular treatments. DABRA employs photoablation to remove cross-blockages by breaking the bonds of the obstructing plaque directly.

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.

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

RA Medical Systems Inc’s price-to-book ratio is higher than its peers. This could make RA Medical Systems Inc less attractive for value investors when compared to the industry median at 1.62.

You can read more about RA Medical Systems 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.

STRATA Skin Sciences Inc’s Value Grade

Value Grade:

STRATA Skin Sciences, Inc. is a medical technology company. The Company is engaged in plastic surgery, developing, commercializing and marketing products for the treatment of dermatologic conditions. The Company operates through two segments: Dermatology Recurring Procedures and Dermatology Procedures Equipment. The Company’s products include the XTRAC and Pharos excimer lasers and VTRAC lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions. The Company's XTRAC excimer laser delivers a targeted therapeutic beam of ultraviolet B (UVB) light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma. Pharos is its excimer laser device that emits concentrated ultraviolet (UV) light and is used as a tool in the treatment of dermatological skin disorders. VTRAC is a UV light lamp system utilized in the treatment of psoriasis, vitiligo and various other skin conditions.

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.

STRATA Skin Sciences Inc has a Value Score of 61, which is considered to be undervalued.

STRATA Skin Sciences Inc’s price-earnings ratio is 0.0 compared to the industry median at 22.3. This means that it has a lower price relative to its earnings compared to its peers. This makes STRATA Skin Sciences Inc more attractive for value investors.

STRATA Skin Sciences Inc’s price-to-book ratio is higher than its peers. This could make STRATA Skin Sciences Inc less attractive for value investors when compared to the industry median at 1.62.

You can read more about STRATA Skin 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.

Tabula Rasa HealthCare Inc’s Value Grade

Value Grade:

Tabula Rasa HealthCare, Inc. Is a healthcare technology company. The Company’s segments include CareVention HealthCare and MedWise HealthCare. The CareVention HealthCare segment provides its clients, primarily organizations with programs of All-Inclusive Care for the Elderly (PACE), with medication fulfillment services, cloud-based software, pharmacy benefit management (PBM) solutions, and clinical pharmacist services at the point-of-care. It accesses the market through a number of different service lines and brands, including CareKinesis, Capstone Risk Adjustment Services, CareVention Consulting, PACElogic, TruChart, PeakTPA, PersonifilRx, and Pharmastar. The MedWise HealthCare segment provides its clients, primarily health plans, and retail pharmacies. It provides cloud-based patient engagement software and services and full-service clinical pharmacy programs. It provides medication therapy management (MTM) software and services for Medicare, Medicaid, and commercial health plans.

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.

Tabula Rasa HealthCare Inc has a Value Score of 77, which is considered to be undervalued.

Tabula Rasa HealthCare Inc’s price-earnings ratio is 0.0 compared to the industry median at 22.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Tabula Rasa HealthCare Inc more attractive for value investors.

Tabula Rasa HealthCare Inc’s price-to-book ratio is higher than its peers. This could make Tabula Rasa HealthCare Inc less attractive for value investors when compared to the industry median at 1.62.

You can read more about Tabula Rasa HealthCare 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 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 7 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.

• Dynatronics Corp stock has a Value Grade of A.
• Neuropace Inc stock has a Value Grade of B.
• Invivo Therapeutics Holdings Corp stock has a Value Grade of A.
• Precipio Inc stock has a Value Grade of B.
• RA Medical Systems Inc stock has a Value Grade of B.
• STRATA Skin Sciences Inc stock has a Value Grade of B.
• Tabula Rasa HealthCare 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 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.

• 7 Undervalued Advanced Medical Equipment & Technology Stocks for Thursday, December, 29
• Is Escalon Medical Corp (ESMC) Stock a Good Investment?
• Is Quantrx Biomedical Corp (QTXB) Stock a Good Investment?
• Which Is a Better Investment, Agilent Technologies Inc or Waters Corporation Stock?

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