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 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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5 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 5 undervalued stocks in the Biotechnology & Medical Research industry for Friday, February 03, 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.

Aptevo Therapeutics Inc’s Value Grade

Value Grade:

Aptevo Therapeutics Inc. is a clinical-stage, research and development biotechnology company. The Company is focused on developing immunotherapeutic candidates for the treatment of different forms of cancer. It has developed two platform technologies, such as ADAPTIR and ADAPTIR-FLEX for rational design of precision immune modulatory drugs. Its lead clinical candidate, APVO436, and preclinical candidates, ALG.APV-527 and APVO603, are developed using its ADAPTIR modular protein technology platform. Its preclinical candidate APVO442 is being developed using its ADAPTIR-FLEX modular protein technology platform. APVO436 is a bispecific CD3xCD123 ADAPTIR that is designed to engage CD3 and CD123 to redirect T-cells to destroy leukemia cells expressing the target CD123 molecule on their surface. APVO603 is a preclinical dual agonist bispecific ADAPTIR candidate employing a mechanism of action to simultaneously target 4-1BB (CD137) and OX40 (CD134), both members of the TNF-receptor family.

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.

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

When you look at Aptevo Therapeutics Inc’s price-to-sales ratio at 1.65 compared to the industry median at 11.05, this company has a lower price relative to revenue compared to its peers. This could make Aptevo Therapeutics Inc’s stock more attractive for value investors.

Aptevo Therapeutics Inc’s price-earnings ratio is 2.05 compared to the industry median at 13.51. This means it has a lower share price relative to earnings compared to its peers. This could make Aptevo Therapeutics Inc more attractive for value investors.

Now, let’s assess Aptevo Therapeutics Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 0.1, when compared to the industry median of 0.8, 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. Aptevo Therapeutics Inc’s shareholder yield is higher than its industry median ratio of (5.16%). 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. Aptevo Therapeutics Inc’s price-to-book ratio is lower than its industry median ratio of 1.85. This could make Aptevo Therapeutics Inc more attractive to investors looking for a new addition to their portfolio.

Bioqual Inc’s Value Grade

Value Grade:

Bioqual, Inc. is engaged in performing contract research services, which is primarily focused on animal models of human diseases, including acquired immune deficiency syndrome (AIDS), influenza, Respiratory Syncytial Virus (RSV) infection, Coronavirus infections (including COVID-19), Flavivirus infections (including Zika and Dengue), malaria, hepatitis, cancer, and other emerging infectious diseases. The Company also performs in vitro contract research services. It is involved in the evaluation of vaccines, vaccine therapeutics, microbicides, and drug therapies. The In vitro services include sample processing, virus stock generation, quantitation of infectious virus, virus neutralization assays, hemagglutination inhibition assay, quantitative PCR, antigen and antibody ELISA detection assays, flow cytometry, lymphocyte proliferation and other cell-based assays. The Company provides its services to the federal government, universities and the life science and pharmaceutical industries.

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.

Bioqual Inc has a Value Score of 66, which is considered to be undervalued.

Bioqual Inc’s price-earnings ratio is 13.9 compared to the industry median at 13.5. This means that it has a higher price relative to its earnings compared to its peers. This makes Bioqual Inc less attractive for value investors.

Bioqual Inc’s price-to-book ratio is lower than its peers. This could make Bioqual Inc fairly attractive for value investors when compared to the industry median at 1.85.

You can read more about Bioqual 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.

Lisata Therapeutics Inc’s Value Grade

Value Grade:

Lisata Therapeutics, Inc., formerly Caladrius Biosciences, Inc., is a clinical-stage biopharmaceutical company. The Company is engaged in the discovery, development, and commercialization of therapies for the treatment of advanced solid tumors and other major diseases. The Company focuses primarily on advancing its CendR Platform technology product candidates in a range of oncology indications. Its lead investigational product candidate, LSTA1, is designed to modify the tumor microenvironment by activating an uptake pathway that allows anti-cancer drugs to penetrate solid tumors. LSTA1 actuates an active transport system in a tumor-specific manner, resulting in systemically co-administered anti-cancer drugs penetrating and accumulating in the tumor, while normal tissues are not affected. In addition, the Company also has clinical development programs based on its autologous CD34+ cell therapy technology platform.

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.

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

Lisata Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Lisata Therapeutics Inc less attractive for value investors when compared to the industry median at 1.85.

You can read more about Lisata 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.

Theriva Biologics Inc’s Value Grade

Value Grade:

Theriva Biologics, Inc., formerly Synthetic Biologics, Inc., is a diversified clinical-stage company developing therapeutics designed to treat diseases in areas of unmet need. The Company is engaged in the development of oncolytic adenovirus platform designed for intravenous (IV), intravitreal and antitumoral delivery to trigger tumor cell death, improve access of co-administered cancer therapies to the tumor, and promote a sustained anti-tumor response by the patient's immune system. Its lead candidates are: VCN-01, an oncolytic adenovirus designed to replicate selectively and aggressively within tumor cells, and to degrade the tumor stroma barrier; SYN-004 (ribaxamase) which is designed to degrade IV beta-lactam antibiotics within the gastrointestinal (GI) tract, and SYN-020, a recombinant oral formulation of the enzyme intestinal alkaline phosphatase (IAP) produced under current good manufacturing practice (cGMP) conditions and intended to treat both local GI and systemic 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.

Theriva Biologics Inc has a Value Score of 81, which is considered to be undervalued.

Theriva Biologics Inc’s price-to-book ratio is higher than its peers. This could make Theriva Biologics Inc less attractive for value investors when compared to the industry median at 1.85.

You can read more about Theriva Biologics 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.

Exicure Inc’s Value Grade

Value Grade:

Exicure, Inc. is an early stage biotechnology company. It is developing nucleic acid therapies targeting ribonucleic acid against validated targets for neurological disorders and hair loss. It is engaged in the development of its preclinical program targeting SCN9A for neuropathic pain; to develop SNA-based treatments in neuroscience targeting Huntingtons disease and Angelman syndrome; to develop Spherical Nucleic Acid (SNA)-based treatments for hair loss disorders; as well as the continued research and development of other therapeutic product candidates. SCN9A is its lead program candidate for the treatment of chronic pain. Cavrotolimod (AST-008) is a toll-like receptor 9 (TLR9), agonist designed for immuno-oncology applications utilizing its SNA technology. Its therapeutic discovery and development efforts are supported by its SNA technology. SNAs are nanoscale constructs consisting of densely packed synthetic nucleic acid molecules that are radially arranged in three dimensions.

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.

Exicure Inc has a Value Score of 66, which is considered to be undervalued.

You can read more about Exicure 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 5 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.

• Aptevo Therapeutics Inc stock has a Value Grade of A.
• Bioqual Inc stock has a Value Grade of B.
• Lisata Therapeutics Inc stock has a Value Grade of A.
• Theriva Biologics Inc stock has a Value Grade of A.
• Exicure 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 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.

• 5 Undervalued Biotechnology & Medical Research Stocks for Friday, February 03
• Which Is a Better Investment, Arrowhead Pharmaceuticals Inc or Xencor Inc Stock?
• Which Is a Better Investment, Ascendis Pharma A/S or Xencor Inc Stock?
• Which Is a Better Investment, Halozyme Therapeutics, Inc. or Xencor Inc Stock?

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