4 Undervalued Health Care Providers & Services Stocks for Friday, December 12

By Tudor Pop
December 12, 2025
Diamond graphic indicating best value stocks in their industry
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Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 stocks made the list for top value stocks in the Health Care Providers & Services 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.

Why Focus on Undervalued Health Care Providers & Services 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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4 Undervalued Health Care Providers & Services Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 4 undervalued stocks in the Health Care Providers & Services industry for Friday, December 12, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Health Care Providers & Services industry median.

Company Ticker Price/Sales Price/Earnings EV/EBITDA Shareholder Yield Price/Book Value Price/Free Cash Flow Value Grade
AMN Healthcare Services, Inc. AMN 0.23 na 10.7 (1.1%) 0.97 2.8 A
Cardinal Health, Inc. CAH 0.20 29.9 13.0 3.1% na 12.0 B
Centene Corporation CNC 0.12 na 7.9 5.9% 0.95 6.0 A
Universal Health Services, Inc. UHS 0.86 10.7 7.7 5.8% 1.96 15.8 A

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.

AMN Healthcare Services, Inc.’s Value Grade

Value Grade:

Metric Score AMN Industry Median
Price/Sales 10 0.23 1.00
Price/Earnings na na 22.0
EV/EBITDA 40 10.7 13.6
Shareholder Yield 57 (1.1%) (1.1%)
Price/Book Value 22 0.97 2.37
Price/Free Cash Flow 5 2.8 19.4

AMN Healthcare Services, Inc. provides technology-enabled healthcare workforce solutions and staffing services to acute and sub-acute care hospitals, and other healthcare facilities in the United States. It operates through three segments: Nurse and Allied Solutions, Physician and Leadership Solutions, and Technology and Workforce Solutions. The Nurse and Allied Solutions segment offers travel nurse staffing, labor disruption staffing, local staffing, international nurse permanent placement, allied staffing, crisis nurse staffing for critical staffing and rapid response nursing, and allied health professionals, such as skilled nursing facilities, rehabilitation clinics, schools, and pharmacies. This segment also provides allied health professionals, such as physical therapists, respiratory therapists, occupational therapists, medical and radiology technologists, lab technicians, speech pathologists, rehabilitation assistants, and pharmacists; and solutions for schools, including teletherapy platform, Televate, and qualified school speech-language pathologists, psychologists, nurses, social workers, and other care providers. The Physician and Leadership Solutions segment offers locum tenens staffing, healthcare interim leadership staffing, executive search, and physician permanent placement solutions. The Technology and Workforce Solutions segment offers language services, vendor management systems, workforce optimization, and outsourced solutions. The company offers its services under the brands, including AMN Healthcare, Nursefinders, O’Grady Peyton International, Connetics, Medical Search International, DRW Healthcare Staffing, and B.E. Smith. AMN Healthcare Services, Inc. was founded in 1985 and is based in Dallas, Texas.

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.

AMN Healthcare Services, Inc. has a Value Score of 88, which is considered to be undervalued.

When you look at AMN Healthcare Services, Inc.’s price-to-sales ratio at 0.23 compared to the industry median at 1.00, this company has a lower price relative to revenue compared to its peers. This could make AMN Healthcare Services, Inc.’s stock more attractive for value investors.

Now, let’s assess AMN Healthcare Services, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 10.7, when compared to the industry median of 13.6, 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. AMN Healthcare Services, Inc.’s shareholder yield is the same than its industry median ratio of (1.10%). 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. AMN Healthcare Services, Inc.’s price-to-book ratio is lower than its industry median ratio of 2.37. This could make AMN Healthcare Services, Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at AMN Healthcare Services, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. AMN Healthcare Services, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 19.40. This could make AMN Healthcare Services, Inc. more attractive because the lower P/FCF ratio indicates that AMN Healthcare Services, Inc. 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.

Cardinal Health, Inc.’s Value Grade

Value Grade:

Metric Score CAH Industry Median
Price/Sales 8 0.20 1.00
Price/Earnings 69 29.9 22.0
EV/EBITDA 51 13.0 13.6
Shareholder Yield 25 3.1% (1.1%)
Price/Book Value na na 2.37
Price/Free Cash Flow 29 12.0 19.4

Cardinal Health, Inc. operates as a healthcare services and products company in the United States and internationally. It operates in two segments: Pharmaceutical and Specialty Solutions, and Global Medical Products and Distribution. The company provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. It distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The company also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; pharmacy management services to hospitals; operates pharmacies, including pharmacies in community health centers; and repackages generic pharmaceuticals and over-the-counter healthcare products. In addition, it manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compression, incontinence, nutritional delivery, and wound care products; single-use surgical drapes, gowns, and apparel products; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. Further, the company distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile and non-sterile procedure kits. Additionally, it manufactures, prepares, and delivers radiopharmaceuticals; and optimizes direct shipments through integrated technology solutions. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.

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.

Cardinal Health, Inc. has a Value Score of 71, which is considered to be undervalued.

Cardinal Health, Inc.’s price-earnings ratio is 29.9 compared to the industry median at 22.0. This means that it has a higher price relative to its earnings compared to its peers. This makes Cardinal Health, Inc. less attractive for value investors.

You can read more about Cardinal Health, 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.

Centene Corporation’s Value Grade

Value Grade:

Metric Score CNC Industry Median
Price/Sales 5 0.12 1.00
Price/Earnings na na 22.0
EV/EBITDA 24 7.9 13.6
Shareholder Yield 13 5.9% (1.1%)
Price/Book Value 21 0.95 2.37
Price/Free Cash Flow 12 6.0 19.4

Centene Corporation operates as a healthcare enterprise that provides programs and services to under-insured and uninsured families, and commercial organizations in the United States. The company operates through four segments: Medicaid, Medicare, Commercial, and Other. The Medicaid segment offers the temporary assistance for needy families; medicaid expansion; aged, blind, or disabled; and children's health insurance programs, as well as long-term services and supports; foster care; and medicare-medicaid plans. This segment also provides healthcare products and services. The Medicare segment offers special needs and medicare supplement, and prescription drug plans. The Commercial segment provides health insurance marketplace product for individual, small, and large group commercials. The Other segment operates clinical healthcare and pharmacies, as well as offers vision and dental, behavioral health, federal, and corporate management services. It provides services through primary and specialty care physicians, hospitals, behavioral health practitioners, and ancillary providers. The company was founded in 1984 and is headquartered in Saint Louis, Missouri.

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.

Centene Corporation has a Value Score of 98, which is considered to be undervalued.

Centene Corporation’s price-to-book ratio is higher than its peers. This could make Centene Corporation less attractive for value investors when compared to the industry median at 2.37.

You can read more about Centene 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.

Universal Health Services, Inc.’s Value Grade

Value Grade:

Metric Score UHS Industry Median
Price/Sales 29 0.86 1.00
Price/Earnings 18 10.7 22.0
EV/EBITDA 22 7.7 13.6
Shareholder Yield 13 5.8% (1.1%)
Price/Book Value 50 1.96 2.37
Price/Free Cash Flow 40 15.8 19.4

Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, and outpatient and behavioral health care facilities. It operates through Acute Care Hospital Services and Behavioral Health Care Services segments. The company’s hospitals offer general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic and coronary care, pediatric, pharmacy, and/or behavioral health services. It also provides commercial health insurance services; and various management services, including central purchasing, information services, finance and control systems, facilities planning, physician recruitment, administrative personnel management, marketing, and public relations services. The company was founded in 1978 and is headquartered in King of Prussia, Pennsylvania.

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.

Universal Health Services, Inc. has a Value Score of 85, which is considered to be undervalued.

Universal Health Services, Inc.’s price-earnings ratio is 10.7 compared to the industry median at 22.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Universal Health Services, Inc. more attractive for value investors.

Universal Health Services, Inc.’s price-to-book ratio is higher than its peers. This could make Universal Health Services, Inc. less attractive for value investors when compared to the industry median at 2.37.

You can read more about Universal Health Services, 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.

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Other Health Care Providers & Services 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 Health Care Providers & Services stocks as well as other industrys.

Choosing Which of the 4 Best Health Care Providers & Services 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.

  • AMN Healthcare Services, Inc. stock has a Value Grade of A.
  • Cardinal Health, Inc. stock has a Value Grade of B.
  • Centene Corporation stock has a Value Grade of A.
  • Universal Health Services, Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 4 undervalued stocks in the Health Care Providers & Services 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.

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Additional Resources About Health Care Providers & Services Stocks

Want to learn more about Health Care Providers & Services 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.

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.



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