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 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.

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

4 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 4 undervalued stocks in the Medical Equipment, Supplies & Distribution industry for Wednesday, April 05, 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.

Adapthealth Corp’s Value Grade

Value Grade:

AdaptHealth Corp. is focused on providing patient-centered, healthcare-at-home solutions, including home medical equipment (HME), medical supplies and related services. The Company is focused on providing sleep therapy equipment, supplies and related services (including CPAP and bi PAP services) to individuals suffering from obstructive sleep apnea (OSA); medical devices and supplies to patients for the treatment of diabetes (including continuous glucose monitors and insulin pumps); home medical equipment to patients discharged from acute care and other facilities; oxygen and related chronic therapy services in the home, and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy and nutritional supply needs. The breadth of the Company’s product is particularly valuable to acute care hospitals, sleep laboratories and long-term care facilities that discharge patients with complex conditions and multiple product needs.

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.

Adapthealth Corp has a Value Score of 61, which is considered to be undervalued.

When you look at Adapthealth Corp’s price-to-sales ratio at 0.55 compared to the industry median at 3.44, this company has a lower price relative to revenue compared to its peers. This could make Adapthealth Corp’s stock more attractive for value investors.

Adapthealth Corp’s price-earnings ratio is 26.35 compared to the industry median at 35.84. This means it has a lower share price relative to earnings compared to its peers. This could make Adapthealth Corp more attractive for value investors.

Now, let’s assess Adapthealth Corp’s EV/EBITDA ratio, also known as enterprise multiple. At 8.3, when compared to the industry median of 15.9, 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. Adapthealth Corp’s shareholder yield is higher than its industry median ratio of (1.49%). 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. Adapthealth Corp’s price-to-book ratio is lower than its industry median ratio of 2.62. This could make Adapthealth Corp more attractive to investors looking for a new addition to their portfolio.

SeaStar Medical Holding Corp’s Value Grade

Value Grade:

SeaStar Medical Holding Corporation is a medical technology company. The Company is focused on redefining how extracorporeal therapies may reduce the consequences of excessive inflammation on vital organs. The Company's technologies rely on science to provide life-saving solutions to critically ill patients. The Company is engaged in developing and commercializing extracorporeal therapies that target the effector cells that drive systemic inflammation, causing direct tissue damage and secreting a range of pro-inflammatory cytokines that initiate and propagate imbalanced immune responses.

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.

SeaStar Medical Holding Corp has a Value Score of 90, which is considered to be undervalued.

SeaStar Medical Holding Corp’s price-earnings ratio is 7.6 compared to the industry median at 35.8. This means that it has a lower price relative to its earnings compared to its peers. This makes SeaStar Medical Holding Corp more attractive for value investors.

SeaStar Medical Holding Corp’s price-to-book ratio is higher than its peers. This could make SeaStar Medical Holding Corp less attractive for value investors when compared to the industry median at 2.62.

You can read more about SeaStar Medical Holding Corp’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.

Myomo Inc’s Value Grade

Value Grade:

Myomo, Inc. is a wearable medical robotics company. The Company offers functional improvement for those with neuromuscular disorders and upper limb paralysis. The Company develops and markets the MyoPro product line. The MyoPro is a myoelectric-controlled upper limb brace (orthosis). The orthosis is a rigid brace used for the purpose of supporting a patient?s weak or paralyzed arm to enable and help improve functional activities of daily living (ADLs), in the home and community. The MyoPro can enable individuals to self-initiate and control movements of a partially paralyzed or weakened limb using their own muscle signals. The Company?s products are designed to help improve function in adults and adolescents with neuromuscular conditions due to brachial plexus injury, stroke, traumatic brain injury, spinal cord injury and other neurological disorders. It primarily provides devices directly to patients and bills their insurance companies.

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.

Myomo Inc has a Value Score of 84, which is considered to be undervalued.

Myomo Inc’s price-to-book ratio is higher than its peers. This could make Myomo Inc less attractive for value investors when compared to the industry median at 2.62.

You can read more about Myomo 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.

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 product 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 other differentiated products in its spine portfolio include Mobi-C Cervical Disc and The Tether. The dental products segment is focused on designing, manufacturing and/or distributing dental implant solutions. Its products include T3 Implant, Tapered Screw-Vent Implant System, and Trabecular Metal Dental Implant.

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 86, 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 2.62.

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 4 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.

• Adapthealth Corp stock has a Value Grade of B.
• SeaStar Medical Holding Corp stock has a Value Grade of A.
• Myomo Inc stock has a Value Grade of A.
• ZimVie 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 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.

• 4 Undervalued Medical Equipment, Supplies & Distribution Stocks for Wednesday, April 05
• 5 Undervalued Medical Equipment, Supplies & Distribution Stocks for Tuesday, April 04
• Why Inari Medical Inc’s (NARI) Stock Is Up 4.81%
• Why OraSure Technologies, Inc.’s (OSUR) Stock Is Up 9.30%

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.