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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 Equipment & Supplies 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 Equipment & Supplies 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 Equipment & Supplies 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 Equipment & Supplies industry for Saturday, February 07, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Health Care Equipment & Supplies industry median.

Company	Ticker	Price/Sales	Price/Earnings	EV/EBITDA	Shareholder Yield	Price/Book Value	Price/Free Cash Flow	Value Grade
Baxter International Inc.	BAX	1.01	na	11.9	(0.6%)	1.54	na	C
CONMED Corporation	CNMD	0.95	20.3	11.9	(0.3%)	1.27	10.4	B
Orthofix Medical Inc.	OFIX	0.61	na	na	(3.3%)	1.14	na	B
Zimmer Biomet Holdings, Inc.	ZBH	2.25	22.3	12.2	3.2%	1.40	17.6	C

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.

Baxter International Inc.’s Value Grade

Value Grade:

Metric	Score	BAX	Industry Median
Price/Sales	33	1.01	2.69
Price/Earnings	na	na	36.2
EV/EBITDA	46	11.9	16.8
Shareholder Yield	53	(0.6%)	(3.8%)
Price/Book Value	41	1.54	2.92
Price/Free Cash Flow	na	na	29.4

Baxter International Inc., through its subsidiaries, provides a portfolio of healthcare products in the United States. The company operates through three segments: Medical Products and Therapies, Healthcare Systems and Technologies, and Pharmaceuticals. It offers sterile intravenous (IV) solutions; infusion systems and devices; parenteral nutrition therapies; administrative sets; generic injectable pharmaceuticals; surgical hemostat and sealant products; advanced surgical equipment; smart bed systems; patient monitoring and diagnostic technologies; and respiratory health devices, as well as advanced equipment for the surgical space comprising operating room integration technologies, precision positioning devices, and other accessories. The company also provides specialty injectable pharmaceuticals, inhaled anesthetics, and drug compounding services. Its products are used in hospitals, nursing homes, rehabilitation centers, ambulatory surgery centers, doctors’ offices, kidney dialysis centers, and patients at home under physician supervision. The company sells its products through direct sales force, independent distributors, drug wholesalers, and specialty pharmacy or other alternate site providers. It has an agreement with Celerity Pharmaceuticals, LLC to develop acute care generic injectable premix and oncolytic products. The company operates in Eastern Europe, the Middle East, Africa, Latin America, Asia, Western Europe, Canada, Japan, Australia, and New Zealand. Baxter International Inc. was incorporated in 1931 and is headquartered in Deerfield, Illinois.

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.

Baxter International Inc. has a Value Score of 58, which is considered to be fairly valued.

When you look at Baxter International Inc.’s price-to-sales ratio at 1.01 compared to the industry median at 2.69, this company has a lower price relative to revenue compared to its peers. This could make Baxter International Inc.’s stock more attractive for value investors.

Now, let’s assess Baxter International Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 11.9, when compared to the industry median of 16.8, 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. Baxter International Inc.’s shareholder yield is higher than its industry median ratio of (3.80%). 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. Baxter International Inc.’s price-to-book ratio is lower than its industry median ratio of 2.92. This could make Baxter International Inc. more attractive to investors looking for a new addition to their portfolio.

CONMED Corporation’s Value Grade

Value Grade:

Metric	Score	CNMD	Industry Median
Price/Sales	31	0.95	2.69
Price/Earnings	48	20.3	36.2
EV/EBITDA	46	11.9	16.8
Shareholder Yield	51	(0.3%)	(3.8%)
Price/Book Value	33	1.27	2.92
Price/Free Cash Flow	24	10.4	29.4

CONMED Corporation, a medical technology company, develops, manufactures, and sells devices and equipment for surgical procedures in the United States and internationally. The company offers orthopedic surgery products, including BioBrace, TruShot with Y-Knot All-In-One Soft Tissue Fixation System, Y-knot All-Suture Anchors, and Agro Knotless Suture Anchors, which provide clinical solutions to orthopedic surgeons for the augmentation and repair of soft tissue injuries, as well as provides supporting products that enable surgeons to perform minimally invasive sports medicine surgeries. It markets orthopedic surgery products under the Hall, CONMED Linvatec, Concept, and Shutt brands. It also provides battery-powered and autoclavable bone power tool systems for use in orthopedic, arthroscopic, oral/maxillofacial, podiatric, spinal, and cardiothoracic surgeries under Hall surgical brand name. In addition, the company offers general surgery products, including clinical insufflation systems under AirSeal brand; smoke removal devices under Buffalo Filter brand; endomechanical products, such as tissue retrieval bags, trocars, suction irrigation devices, graspers, scissors, and dissectors used in minimally invasive surgeries; and electrosurgical solution comprising monopolar and bipolar generators, argon beam coagulation generators, handpieces, smoke management systems and other accessories. Further, the company provides endoscopic technologies, including therapeutic and diagnostic products for use in gastroenterology procedures, and products for the treatment of diseases of the dilatation, hemostasis, biliary, structure management, and infection prevention; and patient monitoring, including ECG and EEG electrodes, and cardiac defibrillation pads. It markets its products directly to hospitals, surgery centers, and other healthcare institutions, as well as through medical specialty distributors. The company was incorporated in 1970 and is headquartered in Largo, Florida.

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.

CONMED Corporation has a Value Score of 67, which is considered to be undervalued.

CONMED Corporation’s price-earnings ratio is 20.3 compared to the industry median at 36.2. This means that it has a lower price relative to its earnings compared to its peers. This makes CONMED Corporation more attractive for value investors.

CONMED Corporation’s price-to-book ratio is higher than its peers. This could make CONMED Corporation less attractive for value investors when compared to the industry median at 2.92.

You can read more about CONMED 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.

Orthofix Medical Inc.’s Value Grade

Value Grade:

Metric	Score	OFIX	Industry Median
Price/Sales	22	0.61	2.69
Price/Earnings	na	na	36.2
EV/EBITDA	na	na	16.8
Shareholder Yield	66	(3.3%)	(3.8%)
Price/Book Value	28	1.14	2.92
Price/Free Cash Flow	na	na	29.4

Orthofix Medical Inc. operates as a medical technology company in the United States, Italy, Germany, the United Kingdom, France, Brazil, and internationally. It operates through two segments, Global Spine and Global Orthopedics. The Global Spine segment manufactures and distributes bone growth stimulation devices that enhance bone fusion, including adjunctive and noninvasive treatment of the cervical and lumbar spine, as well as a therapeutic treatment for non-spinal, appendicular fractures, and fresh fractures that have not healed; designs, develops, and markets a portfolio of spine fixation and motion preservation implant products, which are used in surgical procedures of the spine; and offers biological products, such as fiber-based and particulate demineralized bone matrices, cellular bone allografts, collagen ceramic matrices, synthetic bone void fillers, and tissue forms, which allow physicians to treat various spinal, orthopedic, and dental conditions. This segment also designs, develops, and markets a portfolio of navigation technologies, including tracked surgical tools, intelligent software, and imaging equipment based on machine-vision and optical innovations; and provides 7D flash navigation system for spine and cranial procedures. Its Global Orthopedics segment offers products and solutions that allow physicians to treat various orthopedic conditions related to limb reconstruction and deformity correction unrelated to the spine. This segment designs, develops, and markets external and internal fixation orthopedic products that are coupled with enabling digital technologies to serve the complete patient treatment pathway. It sells its products through distributors and sales representatives to hospitals, healthcare organizations, and healthcare providers. The company was formerly known as Orthofix International N.V. and changed its name to Orthofix Medical Inc. in 2018. Orthofix Medical Inc. was founded in 1980 and is headquartered in Lewisville, 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.

Orthofix Medical Inc. has a Value Score of 67, which is considered to be undervalued.

Orthofix Medical Inc.’s price-to-book ratio is higher than its peers. This could make Orthofix Medical Inc. less attractive for value investors when compared to the industry median at 2.92.

You can read more about Orthofix Medical 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.

Zimmer Biomet Holdings, Inc.’s Value Grade

Value Grade:

Metric	Score	ZBH	Industry Median
Price/Sales	52	2.25	2.69
Price/Earnings	52	22.3	36.2
EV/EBITDA	47	12.2	16.8
Shareholder Yield	23	3.2%	(3.8%)
Price/Book Value	37	1.40	2.92
Price/Free Cash Flow	43	17.6	29.4

Zimmer Biomet Holdings, Inc., together with its subsidiaries, operates as a medical technology company worldwide. The company designs, manufactures, and markets orthopedic reconstructive products, such as knee and hip products; S.E.T. products, including sports medicine, biologics, foot and ankle, extremities, and trauma products; craniomaxillofacial and thoracic products comprising face and skull reconstruction products, as well as products that fixate and stabilize the bones of the chest to facilitate healing or reconstruction after open heart surgery, trauma, or for deformities of the chest. It offers technology and data, bone cement, and surgical products. The company’s products and solutions are used to treat patients suffering from disorders of, or injuries to, bones, joints, or supporting soft tissues. It serves orthopedic surgeons, neurosurgeons, hospitals, stocking distributors, healthcare dealers, and other specialists, as well as agents, healthcare purchasing organizations, or buying groups. It also develops surgical robot to enable placement of patient optimized orthopedic implants in the United States. The company was formerly known as Zimmer Holdings, Inc. and changed its name to Zimmer Biomet Holdings, Inc. in June 2015. Zimmer Biomet Holdings, Inc. was founded in 1927 and is headquartered in Warsaw, Indiana.

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.

Zimmer Biomet Holdings, Inc. has a Value Score of 60, which is considered to be fairly valued.

Zimmer Biomet Holdings, Inc.’s price-earnings ratio is 22.3 compared to the industry median at 36.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Zimmer Biomet Holdings, Inc. more attractive for value investors.

Zimmer Biomet Holdings, Inc.’s price-to-book ratio is higher than its peers. This could make Zimmer Biomet Holdings, Inc. less attractive for value investors when compared to the industry median at 2.92.

You can read more about Zimmer Biomet Holdings, 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 Health Care Equipment & Supplies 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 Equipment & Supplies stocks as well as other industrys.

Choosing Which of the 4 Best Health Care Equipment & Supplies 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.

Baxter International Inc. stock has a Value Grade of C.
CONMED Corporation stock has a Value Grade of B.
Orthofix Medical Inc. stock has a Value Grade of B.
Zimmer Biomet Holdings, Inc. stock has a Value Grade of C.

Now that you have a bit more background about each of the 4 undervalued stocks in the Health Care Equipment & Supplies 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 Health Care Equipment & Supplies Stocks

Want to learn more about Health Care Equipment & Supplies 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.