Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 stocks made the list for top value stocks in the Medical Equipment, Supplies & Distribution 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 Medical Equipment, Supplies & Distribution Stock News

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

There has been an increase in demand for medical devices in recent years, largely driven by process innovations, emerging technology and an aging population. In 2021, the medical equipment industry should positively benefit from coronavirus test sales, new product sales and growing exposure in emerging markets. Companies selling coronavirus tests are expected to have strong sales for the year as people return to offices and schools. There has also been progress made by vaccine campaigns. Analysts expect to see a recovery in elective procedure volumes to pre-pandemic levels, which experienced particularly harsh headwinds in 2020 due to the pandemic. As a result, hospitals likely have a backlog of deferred procedures to work through. However, recovery for the industry could be relatively impacted by the financial pressures facing consumers, which may prevent people from seeking medical attention. In the long term, analysts see positive fundamental trends for medical device manufacturers, including global demand for cost-effective value-based health care, gaining demographics and rising research and development (R&D) investments, which have resulted in a steady stream of innovative products and revenue growth.

Why Focus on Undervalued Medical Equipment, Supplies & Distribution 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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5 Undervalued Medical Equipment, Supplies & Distribution Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Medical Equipment, Supplies & Distribution industry for Tuesday, January 17, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the Medical Equipment, Supplies & Distribution 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.

SeaStar Medical Holding Corp’s Value Grade

Value Grade:

SeaStar Medical Holding Corporation is a medical technology company. The Company is focused on redefining how extracorporeal therapies may reduce the consequences of excessive inflammation on vital organs. The Company's technologies rely on science to provide life-saving solutions to critically ill patients. The Company is engaged in developing and commercializing extracorporeal therapies that target the effector cells that drive systemic inflammation, causing direct tissue damage and secreting a range of pro-inflammatory cytokines that initiate and propagate imbalanced immune responses.

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.

SeaStar Medical Holding Corp has a Value Score of 64, which is considered to be undervalued.

SeaStar Medical Holding Corp’s price-earnings ratio is 22.98 compared to the industry median at 32.26. This means it has a lower share price relative to earnings compared to its peers. This could make SeaStar Medical Holding Corp 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. SeaStar Medical Holding Corp’s shareholder yield is higher than its industry median ratio of (1.88%). 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. SeaStar Medical Holding Corp’s price-to-book ratio is lower than its industry median ratio of 2.60. This could make SeaStar Medical Holding Corp more attractive to investors looking for a new addition to their portfolio.

InspireMD Inc’s Value Grade

Value Grade:

InspireMD, Inc. is a medical device company. The Company is focusing on the development and commercialization of its MicroNet stent platform technology for the treatment of vascular and coronary disease. Its MicroNet, a micron mesh sleeve, is wrapped over a stent to provide embolic protection in stenting procedures. Its CGuard carotid embolic prevention system (CGuard EPS) combines its MicroNet and a self-expandable nitinol stent in a single device for use in carotid artery applications. Its MGuard Prime Embolic Protection System (MGuard Prime EPS) is marketed for use in patients with acute coronary syndromes, notably acute myocardial infarction (heart attack) and saphenous vein graft coronary interventions (bypass surgery). It markets and sells MGuard Prime EPS, a bare-metal cobalt-chromium based stent, for the treatment of coronary disease in the European Union. It is also developing a neurovascular flow diverter (NGuard), which is an endovascular device.

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.

InspireMD Inc has a Value Score of 75, which is considered to be undervalued.

InspireMD Inc’s price-to-book ratio is higher than its peers. This could make InspireMD Inc less attractive for value investors when compared to the industry median at 2.60.

You can read more about InspireMD 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.

Owens & Minor, Inc.’s Value Grade

Value Grade:

Owens & Minor, Inc. is a global healthcare solutions company. It operates through two segments: Global Solutions and Global Products. The Global Solutions segment includes its United States distribution businesses (Medical Distribution and Patient Direct), outsourced logistics and value-added services business. Its portfolio of medical and surgical supplies includes branded products purchased from manufacturers and its own products. Its service offerings to healthcare providers include supplier management, analytics, inventory management, and clinical supply management. Its Global Products segment manufactures and sources medical surgical products through its production and kitting operations. Its home healthcare portfolio provides a range of chronic and acute care needs, including diabetes, ostomy, incontinence, wound care, home respiratory, obstructive sleep apnea and negative pressure wound therapy. Its manufacturing facilities are located in the United States, Thailand, and 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.

Owens & Minor, Inc. has a Value Score of 69, which is considered to be undervalued.

Owens & Minor, Inc.’s price-earnings ratio is 12.6 compared to the industry median at 32.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Owens & Minor, Inc. more attractive for value investors.

Owens & Minor, Inc.’s price-to-book ratio is higher than its peers. This could make Owens & Minor, Inc. less attractive for value investors when compared to the industry median at 2.60.

You can read more about Owens & Minor, 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.

Trinity Biotech plc (ADR)’s Value Grade

Value Grade:

Trinity Biotech PLC is an Ireland-based develops, acquires, manufactures and markets medical diagnostic products for the clinical laboratory and point-of-care (POC) segments of the diagnostic market. The Company's products are used to detect autoimmune, infectious and sexually transmitted diseases, diabetes and disorders of the liver and intestine. Its segments include the Americas and Rest of World. It is a provider of raw materials to the life sciences and research industries globally. It also operates a licensed reference laboratory that specializes in diagnostics for autoimmune diseases. Its POC brands include Uni-Gold, Recombigen, MarDx, FlexTrans, Premier and Ultra. Its clinical laboratory brands include ImmuBlot, ImmuGlo, ImmuLisa, OTOblot, EZ and EZ. It supplies this market with other products through its clinical chemistry business. It manufactures kits for the detection of specialty and esoteric biomarkers of infectious diseases and other associated laboratory products.

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.

Trinity Biotech plc (ADR) has a Value Score of 61, which is considered to be undervalued.

Trinity Biotech plc (ADR)’s price-to-book ratio is lower than its peers. This could make Trinity Biotech plc (ADR) more attractive for value investors when compared to the industry median at 2.60.

You can read more about Trinity Biotech plc (ADR)’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.

GeneDx Holdings Corp’s Value Grade

Value Grade:

GeneDx Holdings Corp., formerly Sema4 Holdings Corp., is engaged in delivering personalized and actionable health insights to inform diagnosis, direct treatment and improve drug discovery. The Company is engaged in accelerating the use of genomic and clinical information to enable precision medicine as the standard of care. The Company is also engaged in transforming healthcare through its exome and genome testing and interpretation, fueled by rare disease data sets. Its health information platform, Centrellis, which integrates digital tools with artificial intelligence to ingest and synthesize clinical and genomic data. Its products and services include Exome & genome testing, Test catalog and Genetic counseling. It offers two types of tests that examine a patient?s deoxyribonucleic acid (DNA), which include genome sequencing (GS/WGS) and exome sequencing (ES/WES). It offers tests for neurodevelopmental disorders, cardiology, oncology and 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.

GeneDx Holdings Corp has a Value Score of 64, which is considered to be undervalued.

GeneDx Holdings Corp’s price-to-book ratio is higher than its peers. This could make GeneDx Holdings Corp less attractive for value investors when compared to the industry median at 2.60.

You can read more about GeneDx 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.

Other Medical Equipment, Supplies & Distribution 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 Medical Equipment, Supplies & Distribution stocks as well as other industrys.

Choosing Which of the 5 Best Medical Equipment, Supplies & Distribution 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.

• SeaStar Medical Holding Corp stock has a Value Grade of B.
• InspireMD Inc stock has a Value Grade of B.
• Owens & Minor, Inc. stock has a Value Grade of B.
• Trinity Biotech plc (ADR) stock has a Value Grade of B.
• GeneDx Holdings Corp stock has a Value Grade of B.

Now that you have a bit more background about each of the 5 undervalued stocks in the Medical Equipment, Supplies & Distribution 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 Medical Equipment, Supplies & Distribution Stocks

Want to learn more about Medical Equipment, Supplies & Distribution 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.

• 5 Undervalued Medical Equipment, Supplies & Distribution Stocks for Tuesday, January 17
• 5 Undervalued Medical Equipment, Supplies & Distribution Stocks for Monday, January 16
• Which Is a Better Investment, Conmed Corp or STAAR Surgical Company Stock?
• Which Is a Better Investment, Globus Medical Inc or Envista Holdings Corp Stock?

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