Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 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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3 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 3 undervalued stocks in the Medical Equipment, Supplies & Distribution industry for Monday, January 23, 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.

Applied DNA Sciences Inc’s Value Grade

Value Grade:

Applied DNA Sciences, Inc. (Applied DNA) develops and markets deoxyribonucleic acid (DNA) based technology solutions. The Company is utilizing its LinearDNA large-scale polymerase chain reaction (PCR) based manufacturing platform. The Company’s proprietary platform produces large quantities of DNA for use in the nucleic acid-based in vitro diagnostics and preclinical nucleic-acid based drug development and manufacturing markets and for supply chain security, anti-counterfeiting and anti-theft technology purposes. Applied DNA also develops PCR-based molecular in vitro diagnostics for covid-19. In addition, under its wholly owned subsidiary, Applied DNA Clinical Labs, LLC, the Company is offering a high-throughput turnkey solution for population-scale Covid-19 testing marketed as safeCircle. safeCircle utilizes the Company’s Covid-19 Diagnostic Tests and is designed to look for infection within defined populations or communities utilizing high throughput testing methodologies.

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.

Applied DNA Sciences Inc has a Value Score of 63, which is considered to be undervalued.

When you look at Applied DNA Sciences Inc’s price-to-sales ratio at 0.97 compared to the industry median at 3.59, this company has a lower price relative to revenue compared to its peers. This could make Applied DNA Sciences Inc’s stock more attractive for value investors.

Now, let’s assess Applied DNA Sciences Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 0.2, when compared to the industry median of 14.5, 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. Applied DNA Sciences Inc’s shareholder yield is lower 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. Applied DNA Sciences Inc’s price-to-book ratio is lower than its industry median ratio of 2.59. This could make Applied DNA Sciences Inc more attractive to investors looking for a new addition to their portfolio.

ConforMIS Inc’s Value Grade

Value Grade:

ConforMIS, Inc. is a medical technology company. The Company is engaged in the development, manufacturing, and sales of patient-specific products and instrumentation that are individually sized and shaped to fit each patient's unique knee and hip anatomy. The Company’s products include iUni, iDuo, iTotal CR, iTotal PS, iTotal Identity, Identity Imprint and Conformis Cordera hip system. The Company’s iFit Image-to-Implant technology platform includes iFit Design, iFit Printing and iFit Just-in-Time Delivery. Its Identity Imprint knee system provides a data-informed knee implant system that provides a level of personalization through its patient-specific instruments (PSI) and proprietary algorithms for pre-surgical planning. Its Image-to-Implant Platinum Services program offering services in United States. The Company offers a line of the sterile, personalized knee and hip implants and single-use instruments delivered to hospitals.

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.

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

ConforMIS Inc’s price-to-book ratio is higher than its peers. This could make ConforMIS Inc less attractive for value investors when compared to the industry median at 2.59.

You can read more about ConforMIS 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.

Invacare Corporation’s Value Grade

Value Grade:

Invacare Corporation designs, manufactures and distributes medical devices that help people move, breathe, rest and perform essential hygiene. The Company provides clinically complex medical device solutions for congenital, acquired and degenerative conditions. Its segments include North America and Europe. Its mobility and seating products include power wheelchairs, custom manual wheelchairs, seating and positioning products and power add-ons. Its lifestyle products include pressure relieving sleep surfaces, safe patient handling, beds, manual wheelchairs and personal care products. Its respiratory therapy products include stationary oxygen concentrators, portable oxygen concentrators and oxygen refilling devices. It also offers repair services, equipment rentals and external contracting. It sells its products to home medical equipment providers, through retail and e-commerce channels, residential care operators, dealers and government health services.

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.

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

Invacare Corporation’s price-to-book ratio is higher than its peers. This could make Invacare Corporation less attractive for value investors when compared to the industry median at 2.59.

You can read more about Invacare 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.

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 3 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.

• Applied DNA Sciences Inc stock has a Value Grade of B.
• ConforMIS Inc stock has a Value Grade of A.
• Invacare Corporation stock has a Value Grade of A.

Now that you have a bit more background about each of the 3 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.

• 3 Undervalued Medical Equipment, Supplies & Distribution Stocks for Monday, January 23
• Which Is a Better Investment, Adapthealth Corp or Merit Medical Systems Inc Stock?
• Which Is a Better Investment, Agiliti Inc or STAAR Surgical Company Stock?
• Which Is a Better Investment, Align Technology, Inc. or Repligen Corp Stock?

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