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 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.

Click the button below to learn more about A+ Investor and subscribe today.

4 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 4 undervalued stocks in the Advanced Medical Equipment & Technology industry for Tuesday, January 03, 2023. 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.

Helius Medical Technologies Inc’s Value Grade

Value Grade:

Helius Medical Technologies, Inc. is a neurotech company focused on neurological wellness. The Company focuses on developing, licensing or acquiring non-implanted technologies targeted at reducing symptoms of neurological disease or trauma. The Company's product, Portable Neuromodulation Stimulator (PoNS), is a non-implanted medical device, inclusive of a controller and mouthpiece, which delivers mild electrical stimulation to the surface of the tongue to provide treatment of gait deficit and chronic balance deficit. PoNS is used as a short-term treatment of gait deficit due to mild-to-moderate symptoms for multiple sclerosis (MS) and is to be used as an adjunct to a supervised therapeutic exercise program in patients 22 years of age and over by prescription only. It is also used as a short-term treatment (14 weeks) of chronic balance deficit due to mild-to-moderate traumatic brain injury (mmTBI) and is to be used in conjunction with physical therapy (PoNS Therapy).

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.

Helius Medical Technologies Inc has a Value Score of 61, which is considered to be undervalued.

When you look at Helius Medical Technologies Inc’s price-to-sales ratio at 3.44 compared to the industry median at 3.76, this company has a lower price relative to revenue compared to its peers. This could make Helius Medical Technologies Inc’s stock more attractive for value investors.

Now, let’s assess Helius Medical Technologies Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 0.9, when compared to the industry median of 9.0, 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. Helius Medical Technologies Inc’s shareholder yield is lower than its industry median ratio of (3.6%). 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. Helius Medical Technologies Inc’s price-to-book ratio is lower than its industry median ratio of 1.69. This could make Helius Medical Technologies Inc more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Helius Medical Technologies Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Helius Medical Technologies Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 23.7. This could make Helius Medical Technologies Inc more attractive because the lower P/FCF ratio indicates that Helius Medical Technologies Inc 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 68, which is considered to be undervalued.

Neuropace Inc’s price-earnings ratio is 0.0 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 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 1.69.

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.

Nexalin Technology Inc’s Value Grade

Value Grade:

Nexalin Technology, Inc. is engaged in designing and developing neurostimulation products for mental health epidemic. The Company developed an easy-to-administer medical device, Generation 1 or Gen-1 that utilizes bioelectronic medical technology to treat anxiety and insomnia, without the need for drugs or psychotherapy. It is also designing clinical trials for the use of Gen-2 for the treatment of substance use disorders and particularly substance abuse issues related to opiates, chronic pain, Alzheimer’s disease and dementia. The Company's products are non-invasive and undetectable and can provide relief to those afflicted with mental health issues without adverse side effects. Its design of varying voltages, currents, electromagnetic fields and various frequencies called as waveform. Its devices generate a high frequency, charge balanced electrical current waveform that is applied to an array of electrodes on the head.

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.

Nexalin Technology Inc has a Value Score of 94, which is considered to be undervalued.

Nexalin Technology Inc’s price-earnings ratio is 0.0 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 Nexalin Technology Inc more attractive for value investors.

Nexalin Technology Inc’s price-to-book ratio is lower than its peers. This could make Nexalin Technology Inc more attractive for value investors when compared to the industry median at 1.69.

You can read more about Nexalin Technology 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 62, which is considered to be undervalued.

STRATA Skin Sciences Inc’s price-earnings ratio is 0.0 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 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 1.69.

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.

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 4 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.

• Helius Medical Technologies Inc stock has a Value Grade of B.
• Neuropace Inc stock has a Value Grade of B.
• Nexalin Technology Inc stock has a Value Grade of A.
• STRATA Skin Sciences 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 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.

• 4 Undervalued Advanced Medical Equipment & Technology Stocks for Tuesday, January, 03
• 6 Undervalued Advanced Medical Equipment & Technology Stocks for Monday, January, 02
• Which Is a Better Investment, Bruker Corporation or Intuitive Surgical, Inc. Stock?
• 3 Undervalued Advanced Medical Equipment & Technology Stocks for Friday, December, 30

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.