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 Wednesday, February 01, 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.

Alpha Pro Tech, Ltd.’s Value Grade

Value Grade:

Alpha Pro Tech, Ltd. is a Canada-based manufacturer of products designed to protect people, products, and environments, including disposable protective apparel, and building products. The Company operates through two segments: Building Supply and Disposable Protective Apparel. Its Building Supply segment consists of a line of construction supply weatherization products. Its construction supply weatherization products consist of house wrap and synthetic roof underlayment, as well as other woven material. Its Disposable Protective Apparel segment consists of disposable protective garments, including shoe covers such as the Aqua Trak and spunbond shoe covers, bouffant caps, coveralls, frocks, lab coats, gowns, and hoods, as well as face masks and face shields for the pharmaceutical, cleanroom, industrial, medical, and dental markets. The Company’s products are sold under, Alpha Pro Tech brand name. Its manufacturing facilities are located in Georgia, Arizona and Utah.

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.

Alpha Pro Tech, Ltd. has a Value Score of 72, which is considered to be undervalued.

When you look at Alpha Pro Tech, Ltd.’s price-to-sales ratio at 0.83 compared to the industry median at 3.69, this company has a lower price relative to revenue compared to its peers. This could make Alpha Pro Tech, Ltd.’s stock more attractive for value investors.

Alpha Pro Tech, Ltd.’s price-earnings ratio is 16.30 compared to the industry median at 33.67. This means it has a lower share price relative to earnings compared to its peers. This could make Alpha Pro Tech, Ltd. more attractive for value investors.

Now, let’s assess Alpha Pro Tech, Ltd.’s EV/EBITDA ratio, also known as enterprise multiple. At 6.4, when compared to the industry median of 14.7, 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. Alpha Pro Tech, Ltd.’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. Alpha Pro Tech, Ltd.’s price-to-book ratio is lower than its industry median ratio of 2.58. This could make Alpha Pro Tech, Ltd. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Alpha Pro Tech, Ltd.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Alpha Pro Tech, Ltd.’s price-to-free-cash-flow ratio is higher than its industry median ratio of 49.74. This could make Alpha Pro Tech, Ltd. less attractive because the higher P/FCF ratio indicates that Alpha Pro Tech, Ltd. 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.

Biocept Inc’s Value Grade

Value Grade:

Biocept, Inc. is a molecular oncology diagnostics company. The Company focuses on developing and commercializing clinical diagnostic laboratory assays designed to identify tumor cells and cell-free tumor deoxyribonucleic acid (DNA) from blood, and cerebrospinal fluid (CSF). Its product is branded and trademarked under the name of CNSide. In addition to CNSide, its current blood-based testing includes its Target Selector technologies, which enables detection of specific gene mutations, such as EGFR, KRAS or BRAF, in cell-free ctDNA from blood samples, as well as specific protein and gene alterations, such as HER2 amplification, in circulating tumor cells (CTCs) isolated from blood. Its multi-modality combination of a cell capture and analysis method used with a cell-free tumor DNA approach provides both high-sensitivity and specificity and is applicable to a range of diagnostic applications in patients with metastatic carcinoma. It provides blood-based liquid biopsy technology.

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.

Biocept Inc has a Value Score of 85, which is considered to be undervalued.

Biocept Inc’s price-to-book ratio is higher than its peers. This could make Biocept Inc less attractive for value investors when compared to the industry median at 2.58.

You can read more about Biocept 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.

Encision Inc’s Value Grade

Value Grade:

Encision Inc. is a medical device company. The Company designs, develops, manufactures and markets patented surgical instruments that provide safety to patients undergoing minimally-invasive surgery. Its segments include product and service. Product designs, develops, manufactures and markets patented surgical instruments. Service performs electrical engineering activities for external entities. Its Active Electrode Monitoring (AEM) technology provides surgeons with the desired tissue effects of cutting and coagulating tissue in laparoscopic procedures, while preventing stray electrosurgical energy that can cause complications and even death. Its shielded and monitored instruments enable surgeons to perform electrosurgical procedures. The Company has developed and launched AEM Surgical Instruments and Monitors for laparoscopic surgical procedures. The Company is also engaged in various manufacturing and assembly activities at its leased facility in Boulder, Colorado.

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.

Encision Inc has a Value Score of 61, which is considered to be undervalued.

Encision Inc’s price-to-book ratio is higher than its peers. This could make Encision Inc less attractive for value investors when compared to the industry median at 2.58.

You can read more about Encision 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 2.58.

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.

ZimVie Inc’s Value Grade

Value Grade:

ZimVie Inc. is a medical technology company. The Company develops, manufactures, and markets a portfolio of products and solutions designed to treat a range of spine pathologies and support dental tooth replacement and restoration procedures. The Company’s operations are managed on a products basis and include two operating segments: the spine products segment, and the dental products segment. Its spine products segment focused on designing, manufacturing, and distributing medical devices and surgical instruments to deliver solutions for individuals with back or neck pain caused by degenerative conditions, deformities, tumors, or traumatic injury of the spine. Its product portfolio includes Mobi-C Cervical Disc and the Tether device. Its dental products segment is focused on designing, manufacturing and/or distributing of dental implant solutions. Its products include T3 Implant, Tapered Screw-Vent Implant System, Trabecular Metal Dental Implant, and BellaTek Encode Impression System.

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.

ZimVie Inc has a Value Score of 80, which is considered to be undervalued.

ZimVie Inc’s price-to-book ratio is higher than its peers. This could make ZimVie Inc less attractive for value investors when compared to the industry median at 2.58.

You can read more about ZimVie 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 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.

• Alpha Pro Tech, Ltd. stock has a Value Grade of B.
• Biocept Inc stock has a Value Grade of A.
• Encision Inc stock has a Value Grade of B.
• Trinity Biotech plc (ADR) stock has a Value Grade of B.
• ZimVie Inc 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 Wednesday, February 01
• 3 Undervalued Medical Equipment, Supplies & Distribution Stocks for Tuesday, January 31
• 4 Undervalued Medical Equipment, Supplies & Distribution Stocks for Monday, January 30
• 3 Undervalued Medical Equipment, Supplies & Distribution Stocks for Thursday, January 26

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