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 Biotechnology & Medical Research 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 Biotechnology & Medical Research Stock News

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

The Biotechnology and Medical Research sub-industry has a positive outlook, a historically defensive sub-industry. Drug sales are anticipated to have high growth, primarily driven by COVID-19 therapeutics, the continued adoption of many new and innovative therapies, a favorable M&A environment, and a low prevalence of patent expirations in 2022. Additionally, companies could see prescription growth pick up as in-person physician visits return to pre-pandemic levels. As COVID-19 variants have emerged, vaccine boosters have been offered in order to increase efficacy. Due to this, repeat vaccinations will likely be necessary for lifelong immunity which would provide a long-lasting and significant source of revenue for lead vaccine developers. Aside from vaccines, the biotech industry is dependent on the volume of new therapy approvals. The FDA’s heavy focus on COVID-19 could slow the approvals on non-COVID-19 therapies. Despite this, the biotech industry will likely see promising sales growth over the next five years as it usually takes at least five years for new drugs to reach peak sales levels. Approval activity has also been on the rise recently. Mergers and acquisitions activity is expected to remain low as a more activist Federal Trade Commission (led by Lina Khan) could be more skeptical of proposed mergers. Year to date through June 30, the S&P 1500 Biotech Index was down 1.6%, vs. a 20.5% decline for the S&P 1500 Composite Index. In 2021, the Biotech Index rose 8.2%, vs. a 26.7% gain for the Composite Index.

Why Focus on Undervalued Biotechnology & Medical Research 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 Biotechnology & Medical Research 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 Biotechnology & Medical Research industry for Wednesday, January 25, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the Biotechnology & Medical Research 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 Molecular Transport Inc.’s Value Grade

Value Grade:

Applied Molecular Transport Inc. is a clinical-stage biopharmaceutical company. The Company is leveraging its technology platform to design and develop a pipeline of oral biologic product candidates to treat autoimmune, inflammatory, metabolic, and other diseases. The Company is building a portfolio of oral product candidates based on its technology platform, including AMT-101, an oral gastrointestinal (GI)-selective oral fusion of interleukin 10 (IL-10) that has completed a Phase 1b clinical trial in patients with ulcerative colitis (UC). The Company’s other product candidate, AMT-126, is a GI-selective oral fusion of interleukin 22 (IL-22). Its technology platform enables it to design and develop various oral biologic therapeutic modalities, such as peptides, proteins, full-length antibodies, antibody fragments, and ribonucleic acid (RNA) therapeutics with development-stage drugs.

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 Molecular Transport Inc. has a Value Score of 94, which is considered to be undervalued.

Now, let’s assess Applied Molecular Transport Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 0.3, when compared to the industry median of 0.9, 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 Molecular Transport Inc.’s shareholder yield is higher than its industry median ratio of (5.20%). 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 Molecular Transport Inc.’s price-to-book ratio is lower than its industry median ratio of 1.77. This could make Applied Molecular Transport Inc. more attractive to investors looking for a new addition to their portfolio.

Angion Biomedica Corp’s Value Grade

Value Grade:

Angion Biomedica Corp. is a clinical-stage biopharmaceutical company focused on the discovery, development, and commercialization of novel small molecule therapeutics to address chronic and progressive fibrotic diseases. The Company’s products include ANG-3070, ROCK2 Inhibitor, CYP11B2 Inhibitor and ANG-3777. ANG-3070 is a highly selective oral tyrosine kinase receptor inhibitor (TKI) in development as a treatment for fibrotic diseases, particularly in the kidney and lung. The Company provides ANG-3070 for Fibrotic Diseases; ANG-3070 for Renal Fibrosis; ANG-3070 for Pulmonary Fibrosis. ROCK2 Inhibitor program targeted towards the treatment of fibrotic diseases. CYP11B2 Inhibitor program targeted towards diseases related to aldosterone synthase dysregulation. ANG-3777 is designed to mimic the biological activity of HGF and to treat acute organ injuries, such as delayed graft function.

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.

Angion Biomedica Corp has a Value Score of 92, which is considered to be undervalued.

Angion Biomedica Corp’s price-to-book ratio is higher than its peers. This could make Angion Biomedica Corp less attractive for value investors when compared to the industry median at 1.77.

You can read more about Angion Biomedica 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.

Chimerix Inc’s Value Grade

Value Grade:

Chimerix, Inc. is a biotechnology company. The Company is focused on discovering, developing and commercializing medicines that address unmet medical needs. The Company's product Imipridones is a cancer therapies, which provides ONC201 for brain and other cancers, ONC206 for central nervous system cancer and ONC212 for pancreatic cancer and leukemia. Imipridones targets specific G protein-coupled receptors (GPCRs) and mitochondrial caseinolytic protease P (ClpP), resulting in cancer cell death. The Company's product Imipridone chemical scaffold provides an opportunity to target GPCRs and ClpP with tunable specificity and modality, which enables therapeutic use for cancer and other diseases. Its ONC201 is in a phase II trial to treat neuroendocrine tumors (Pheochromocytoma/paraganglioma). Its ONC206 is an imipridone, Dopamine Receptor D2 (DRD2) antagonist and ClpP agonist. Its ONC212 is an imipridone, investigational agonist of the orphan GPCR tumor suppressor GPR132, as well as ClpP.

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.

Chimerix Inc has a Value Score of 83, which is considered to be undervalued.

Chimerix Inc’s price-earnings ratio is 1.0 compared to the industry median at 12.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Chimerix Inc more attractive for value investors.

Chimerix Inc’s price-to-book ratio is higher than its peers. This could make Chimerix Inc less attractive for value investors when compared to the industry median at 1.77.

You can read more about Chimerix 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.

Mind Medicine (MindMed) Inc’s Value Grade

Value Grade:

Mind Medicine (MindMed) Inc. is a Canada-based clinical-stage biopharmaceutical company. The Company is engaged in developing products to treat brain health disorders, with a particular focus on psychiatry, addiction, pain and neurology. The Company is developing a pipeline of drug candidates, targeting the serotonin, dopamine and acetylcholine systems. This specifically includes pharmaceutically optimized drug products derived from the psychedelic and empathogen drug classes, including lysergic acid diethylamide (LSD), R(-)-methylenedioxymethamphetamine (MDMA) and zolunicant, or 18-methoxycoronaridine (MC), a congener of ibogaine. The Company’s subsidiaries include Mind Medicine, Inc. (MindMed US), HealthMode, Inc., MindMed Pty Ltd., and MindMed GmbH.

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.

Mind Medicine (MindMed) Inc has a Value Score of 87, which is considered to be undervalued.

Mind Medicine (MindMed) Inc’s price-to-book ratio is higher than its peers. This could make Mind Medicine (MindMed) Inc less attractive for value investors when compared to the industry median at 1.77.

You can read more about Mind Medicine (MindMed) 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.

Phio Pharmaceuticals Corp’s Value Grade

Value Grade:

Phio Pharmaceuticals Corp. is a biotechnology company. The Company is focused on developing immuno-oncology therapeutics based on its self-delivering ribonucleic acid interface (RNAi) INTASYL therapeutic platform. Its INTASYL-based therapeutics are used to strengthen immune cells, for example those administered as part of adoptive cell therapy (ACT) and directly modify cells in the tumor microenvironment (the TME) to weaken a tumors defense. Its lead product candidate is PH-762, which is an INTASYL compound that activates immune cells to better recognize and kill cancer cells by reducing the expression of the checkpoint protein PD-1, a clinically validated target for immunotherapy. Its second product candidate, PH-894, is an INTASYL compound that silences the epigenetic protein BRD4, which is an intracellular regulator of gene expression that impacts cell differentiation, and hence, cell function. It is also developing PH-804, which targets the suppressive immune receptor TIGIT.

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.

Phio Pharmaceuticals Corp has a Value Score of 93, which is considered to be undervalued.

Phio Pharmaceuticals Corp’s price-to-book ratio is higher than its peers. This could make Phio Pharmaceuticals Corp less attractive for value investors when compared to the industry median at 1.77.

You can read more about Phio Pharmaceuticals 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.

Qualigen Therapeutics Inc’s Value Grade

Value Grade:

Qualigen Therapeutics, Inc. is a diversified life sciences company focused on developing treatments for adult and pediatric cancer. The Company's cancer therapeutics pipeline includes QN-302, QN-247 and RAS-F. QN-302 compound is a small molecule genomic quadruplex (G4) selective transcription inhibitor with binding affinity to G4s prevalent in cancer cells. QN-247 is a deoxyribonucleic acid (DNA) coated gold nanoparticle cancer drug candidate to target various types of cancer. RAS-F is a family of rat sarcoma virus (RAS) oncogene protein-protein interaction inhibitor small molecules for preventing mutated RAS genes’ proteins from binding to their effector proteins and preventing this binding to stop tumor growth, especially in RAS-driven tumors such as pancreatic, colorectal and lung cancers. Its pipeline also includes QN-165, a drug candidate for treating COVID-19 and other viral-based infectious diseases.

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.

Qualigen Therapeutics Inc has a Value Score of 98, which is considered to be undervalued.

Qualigen Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Qualigen Therapeutics Inc less attractive for value investors when compared to the industry median at 1.77.

You can read more about Qualigen Therapeutics 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.

SenesTech Inc’s Value Grade

Value Grade:

SenesTech, Inc. is developing and commercializing a global technology for managing animal pest populations, initially rat populations, through fertility control. The Company’s product ContraPest, is a liquid bait containing the active ingredients 4-vinylcyclohexene diepoxide (VCD) and triptolide. ContraPest limits the reproduction of male and female rats beginning with the first breeding cycle following consumption. ContraPest is a highly palatable liquid formulation that reduces fertility in both male and female rats. VCD is an occupational chemical that selectively destroys ovarian follicles in rats. The Company also continues to research and develop enhancements to ContraPest that align with its target verticals and other potential fertility control options for additional species. The Company is developing a fertility control product for mice. The Company has also developed preliminary data with feral dogs, feral pigs, wallabies and brushtail possums.

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.

SenesTech Inc has a Value Score of 65, which is considered to be undervalued.

SenesTech Inc’s price-to-book ratio is higher than its peers. This could make SenesTech Inc less attractive for value investors when compared to the industry median at 1.77.

You can read more about SenesTech 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 Biotechnology & Medical Research 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 Biotechnology & Medical Research stocks as well as other industrys.

Choosing Which of the 7 Best Biotechnology & Medical Research 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 Molecular Transport Inc. stock has a Value Grade of A.
• Angion Biomedica Corp stock has a Value Grade of A.
• Chimerix Inc stock has a Value Grade of A.
• Mind Medicine (MindMed) Inc stock has a Value Grade of A.
• Phio Pharmaceuticals Corp stock has a Value Grade of A.
• Qualigen Therapeutics Inc stock has a Value Grade of A.
• SenesTech 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 Biotechnology & Medical Research 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 Biotechnology & Medical Research Stocks

Want to learn more about Biotechnology & Medical Research 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 Biotechnology & Medical Research Stocks for Wednesday, January 25
• Is Tricida Inc (TCDAQ) Stock a Good Investment?
• 4 Undervalued Biotechnology & Medical Research Stocks for Tuesday, January 24
• Which Is a Better Investment, AbCellera Biologics Inc or Ionis Pharmaceuticals Inc Stock?

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