Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 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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7 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 7 undervalued stocks in the Biotechnology & Medical Research industry for Monday, April 10, 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.

CytomX Therapeutics Inc’s Value Grade

Value Grade:

CytomX Therapeutics, Inc. is a clinical-stage, oncology-focused biopharmaceutical company. The Company is developing a class of investigational conditionally activated therapeutics, based on its Probody technology platform, for the treatment of cancer. Its Probody technology platform is designed to enable conditional activation of antibody-based drugs in the tumor microenvironment while minimizing drug activity in healthy tissues and in circulation. The Company's product candidates include the conditionally activated antibody-drug conjugates (ADCs) praluzatamab ravtansine (CX2009, targeting CD166) and CX-2029, targeting CD71, and the Probody immune checkpoint inhibitors pacmilimab (CX-072, targeting PD-L1) and BMS-986249 (targeting CTLA-4). It also has two preclinical agents in investigational new drug (IND)-enabling studies - a conditionally activated ADC targeting EpCAM/Trop-1 (CX-2043) and a conditionally activated T-cell engaging bispecific antibody targeting EGFR and CD3 (CX-904).

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.

CytomX Therapeutics Inc has a Value Score of 67, which is considered to be undervalued.

When you look at CytomX Therapeutics Inc’s price-to-sales ratio at 1.94 compared to the industry median at 8.71, this company has a lower price relative to revenue compared to its peers. This could make CytomX Therapeutics Inc’s stock more attractive for value investors.

Now, let’s assess CytomX Therapeutics Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 0.9, when compared to the industry median of 0.9, 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. CytomX Therapeutics Inc’s shareholder yield is higher than its industry median ratio of (5.70%). 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.

Dominari Holdings Inc’s Value Grade

Value Grade:

Dominari Holdings Inc., formerly AIkido Pharma Inc., is a biotechnology company. The Company has a diverse portfolio of small-molecule anticancer and antiviral therapeutics in development. The Company?s pipeline consists of patented technology from universities and researchers. The Company advances its therapeutic drug pipeline through a collaboration with educational institutions, including the University of Texas at Austin, the University of Maryland, Baltimore and Wake Forest University. Its oncology therapeutics include treatments for pancreatic cancer, acute myeloid leukemia (AML) and acute lymphoblastic leukemia (ALL). It is also developing a broad-spectrum antiviral platform, in which the lead compounds have activity against multiple viruses including Influenza virus, Ebolavirus and Marburg virus, SARS-CoV, MERS-CoV, and SARS-CoV-2, the cause of COVID-19. Its pancreatic drug candidate, DHA-dFdC, is a chemotherapy treatment for advanced pancreatic cancer.

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.

Dominari Holdings Inc has a Value Score of 88, which is considered to be undervalued.

Dominari Holdings Inc’s price-to-book ratio is higher than its peers. This could make Dominari Holdings Inc less attractive for value investors when compared to the industry median at 1.40.

You can read more about Dominari 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.

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 76, 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 1.40.

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.

Magenta Therapeutics Inc’s Value Grade

Value Grade:

Magenta Therapeutics, Inc. is a clinical-stage biotechnology company. The Company is developing medicines designed to bring the curative power of stem cell transplants to more patients with blood cancers, genetic diseases and autoimmune diseases. Its drug development pipeline includes multiple product candidates designed to improve stem cell transplants. Its lead clinical program is designed to mobilize and collect sufficient functional stem cells for use in stem cell transplantation, a process known as mobilization. It is also developing product candidates that are designed to deplete targeted cells in the bone marrow to make space for the bone marrow to receive newly transplanted stem cells, a process known as conditioning. The Company's pipeline of stem cell transplant product candidates consists of MGTA-145, MGTA-117, C300, C100, G100, MGTA-456 and E478. It is developing product candidates to be used individually or, in some cases, in combination with each other.

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.

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

Magenta Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Magenta Therapeutics Inc less attractive for value investors when compared to the industry median at 1.40.

You can read more about Magenta 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.

Neubase Therapeutics Inc’s Value Grade

Value Grade:

NeuBase Therapeutics, Inc. is a preclinical-stage biopharmaceutical company. The Company is developing a modular peptide-nucleic acid (PNA) antisense oligo (PATrOL) platform to address genetic diseases. The PATrOL-enabled anti-gene therapies are designed to improve upon current genetic medicine strategies by combining the advantages of synthetic approaches with the precision of antisense technologies. Its programs are NT-0100 in HD, NT-0200 in Myotonic Dystrophy Type 1 (DM1) and NT-0300 in KRAS-driven cancers. The NT-0100 program is a PATrOL-enabled therapeutic program being developed to target the mutant expansion in the HD messenger ribonucleic acid (mRNA). The NT-0200 program is a PATrOL-enabled therapeutic program being developed to target the mutant expansion in the DM1 disease mRNA. The NT-0300 program is a PATrOL-enabled therapeutic program being developed to target the mutated KRAS gene.

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.

Neubase Therapeutics Inc has a Value Score of 94, which is considered to be undervalued.

Neubase Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Neubase Therapeutics Inc less attractive for value investors when compared to the industry median at 1.40.

You can read more about Neubase 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.

Synaptogenix Inc’s Value Grade

Value Grade:

Synaptogenix, Inc. is a biopharmaceutical company. The Company is principally focused on developing therapeutics for patients with neurodegenerative diseases and developmental disorders. The Company is focused on developing a product platform based on a drug candidate called Bryostatin-1, which is synthesized from a natural product (bryostatin) that is isolated from a marine invertebrate organism, for the treatment of Alzheimer's disease (AD). Bryostatin-1 is a Protein Kinase C Epsilon (PKC e), a and e activator that was originally developed as a potential anticancer drug. The Company is evaluating therapeutic applications of bryostatin for other neurodegenerative or cognitive diseases and dysfunctions, such as Fragile X syndrome, Multiple Sclerosis (MS), and Niemann-Pick Type C disease.

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.

Synaptogenix Inc has a Value Score of 88, which is considered to be undervalued.

Synaptogenix Inc’s price-to-book ratio is higher than its peers. This could make Synaptogenix Inc less attractive for value investors when compared to the industry median at 1.40.

You can read more about Synaptogenix 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.

Syros Pharmaceuticals Inc’s Value Grade

Value Grade:

Syros Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on developing new standards of care for the frontline treatment of patients with hematologic malignancies. Its lead product candidates include Tamibarotene and SY-2101. Its Tamibarotene, is a selective retinoic acid receptor alpha (RARa), agonist RARA-positive patients with higher-risk myelodysplastic syndrome (HR-MDS) and acute myeloid leukemia (AML). Its SY-2101, is an oral form of arsenic trioxide (ATO) being developed for the treatment of acute promyelocytic leukemia (APL). The Company?s product candidate also includes SY-5609, which is a selective and potent oral inhibitor of cyclin-dependent kinase 7 (CDK7) which is being developed for patients with select solid tumors and in combination with gemcitabine and with gemcitabine plus nab-paclitaxel in patients with metastatic pancreatic cancer. It is also focused on the development for the treatment of multiple preclinical programs in oncology.

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.

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

Syros Pharmaceuticals Inc’s price-to-book ratio is higher than its peers. This could make Syros Pharmaceuticals Inc less attractive for value investors when compared to the industry median at 1.40.

You can read more about Syros 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.

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 7 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.

• CytomX Therapeutics Inc stock has a Value Grade of B.
• Dominari Holdings Inc stock has a Value Grade of A.
• Lisata Therapeutics Inc stock has a Value Grade of B.
• Magenta Therapeutics Inc stock has a Value Grade of A.
• Neubase Therapeutics Inc stock has a Value Grade of A.
• Synaptogenix Inc stock has a Value Grade of A.
• Syros Pharmaceuticals Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 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.

• 7 Undervalued Biotechnology & Medical Research Stocks for Monday, April 10
• 6 Undervalued Biotechnology & Medical Research Stocks for Friday, April 07
• 3 Undervalued Biotechnology & Medical Research Stocks for Thursday, April 06
• Is Codiak BioSciences Inc (CDAKQ) Stock a Good Investment?

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