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.

Click the button below to learn more about A+ Investor and subscribe today.

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 Tuesday, February 07, 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.

Arca Biopharma Inc’s Value Grade

Value Grade:

ARCA biopharma, Inc. (ARCA) is a biopharmaceutical company, which is focused on development and commercialization of targeted therapies for cardiovascular diseases. The Company's lead product includes Recombinant Nematode Anticoagulant Protein c2, or rNAPc2 (AB201) and Gencaro (bucindolol hydrochloride). rNAPc2 (AB201) is a treatment for diseases caused by ribonucleic acid (RNA), viruses, focusing on COVID-19, the disease syndrome caused by the SARS-CoV-2 virus. The gencaro is a pharmacogenetically-targeted beta-adrenergic receptor antagonist with mild vasodilator properties for the treatment of atrial fibrillation (AF) in patients with heart failure. The Company is conducting Phase II b clinical trial of rNAPc2 (AB201). Its ASPEN-COVID-19 Phase IIb is a randomized, multi-center, international clinical trial evaluating two dose regimens of rNAPc2 versus heparin prescribed per local standard of care in hospitalized SARS-CoV-2 positive patients that also have an elevated D-dimer level.

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.

Arca Biopharma Inc has a Value Score of 94, which is considered to be undervalued.

Now, let’s assess Arca Biopharma Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 1.0, when compared to the industry median of 0.8, the company may be considered overvalued 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. Arca Biopharma Inc’s shareholder yield is higher than its industry median ratio of (5.00%). 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. Arca Biopharma Inc’s price-to-book ratio is lower than its industry median ratio of 1.82. This could make Arca Biopharma Inc more attractive to investors looking for a new addition to their portfolio.

Aquabounty Technologies Inc’s Value Grade

Value Grade:

AquaBounty Technologies, Inc. is engaged in the field of land-based aquaculture. The Company's GE Atlantic salmon is based upon salmon genetics and grows to harvest size faster than conventional Atlantic salmon. It farms its GE Atlantic salmon in land-based, recirculating aquaculture systems (RAS). The closed, contained, land-based production systems using RAS technology that the Company uses for the grow-out of its fish are less susceptible to the disease-related pressures of conventional salmon farming. Its RAS facilities provide water treatment technology, including the use of ozone, salt treatment and ultraviolet radiation to kill potential bacterial, fungal, or viral pathogens, which might enter the system. Its GE Atlantic salmon is based upon a single, specific molecular modification in the fish that results in rapid growth in early development. It has two salmon farms in production, one is located in Indiana and the other located in Prince Edward Island, Canada.

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.

Aquabounty Technologies Inc has a Value Score of 68, which is considered to be undervalued.

Aquabounty Technologies Inc’s price-to-book ratio is higher than its peers. This could make Aquabounty Technologies Inc less attractive for value investors when compared to the industry median at 1.82.

You can read more about Aquabounty Technologies 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.

Cyclacel Pharmaceuticals Inc’s Value Grade

Value Grade:

Cyclacel Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in developing cancer medicines based on cell cycle, transcriptional regulation and mitosis control biology. The Company is focused on the field of cancer cell cycle biology with a vision to improve patient healthcare by translating insights in cancer biology into medicines that can overcome resistance and ultimately increase a patient’s overall survival. The Company's pipeline includes Fadraciclib, CYC140 and Sapacitabine. The Fadraciclib is a cyclin dependent kinase (CDK) inhibitor selectively targeting Cyclin Dependent Kinase 2 (CDK2) and Cyclin-dependent kinase 9 (CDK9). The CYC140 is a novel, small molecule, selective and potent PLK-centric inhibitor. The Company's Sapacitabine (CYC682) is an orally available nucleoside analogue with a DNA damage response (DDR) mechanism.

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.

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

Cyclacel Pharmaceuticals Inc’s price-to-book ratio is higher than its peers. This could make Cyclacel Pharmaceuticals Inc less attractive for value investors when compared to the industry median at 1.82.

You can read more about Cyclacel Pharmaceuticals 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.

Harpoon Therapeutics Inc’s Value Grade

Value Grade:

Harpoon Therapeutics, Inc. is a clinical-stage immunotherapy company. The Company is engaged in the developing a T cell engager that harness the power of the body’s immune system to treat patients suffering from cancer and other diseases. It is developing a pipeline of T cell engagers using its TriTACs, focused on the treatment of solid tumors and hematologic malignancies. It has also nominated its clinical candidate using its ProTriTAC platform, a prodrug version of its TriTAC platform, designed to expand the target space for T cell engagers and bring the benefits of TriTACs to the patients. The Company’s TriTAC product candidates include HPN328, HPN217 and HPN536. The Company’s ProTriTAC product candidate include HPN601. T cell engagers are engineered proteins that direct a patient’s own T cells to kill target cells that express specific proteins, or antigens, carried by the target cells.

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.

Harpoon Therapeutics Inc has a Value Score of 69, which is considered to be undervalued.

Harpoon Therapeutics Inc’s price-to-book ratio is lower than its peers. This could make Harpoon Therapeutics Inc more attractive for value investors when compared to the industry median at 1.82.

You can read more about Harpoon 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.

Biomx Inc’s Value Grade

Value Grade:

BiomX Inc., formerly Chardan Healthcare Acquisition Corp., is a microbiome company. The Company is focused on developing both natural and engineered phage therapies. It develops therapies to target and destroy bacteria that affect the appearance of skin, as well as harmful bacteria in chronic diseases, such as inflammatory bowel disease (IBD), primary sclerosing cholangitis (PSC) and cancer. The Company discovers and validates bacterial targets and customizes phage compositions against the targets. Its pipeline includes BX001, BX002 and BX003. BX001 is a product candidate that improves the appearance of acne-prone skin. BX002 is a customized phage cocktail that eradicates bacterial targets associated with the onset of IBD. BX003 is a customized phage cocktail developed against specific strains of Klebsiella pneumoniae (Kp).

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.

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

Biomx Inc’s price-to-book ratio is higher than its peers. This could make Biomx Inc less attractive for value investors when compared to the industry median at 1.82.

You can read more about Biomx 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.

• Arca Biopharma Inc stock has a Value Grade of A.
• Aquabounty Technologies Inc stock has a Value Grade of B.
• Cyclacel Pharmaceuticals Inc stock has a Value Grade of B.
• Harpoon Therapeutics Inc stock has a Value Grade of B.
• Biomx Inc stock has a Value Grade of A.

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 Tuesday, February 07
• 5 Undervalued Biotechnology & Medical Research Stocks for Monday, February 06
• Which Is a Better Investment, AbCellera Biologics Inc or FibroGen Inc Stock?
• Which Is a Better Investment, Alkermes Plc or Amicus Therapeutics, Inc. Stock?

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.