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 Healthcare Facilities & 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.

Latest Healthcare Facilities & Services Stock News

Before choosing which top Healthcare Facilities & Services stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

Our fundamental outlook for health care facilities (primarily hospitals) industry over the next 12 months is neutral. Widespread distribution of vaccines in the first half of 2021 is helping Covid-19 counts come down. This is likely to alleviate some of the pressure’s hospitals have been facing with staffing difficulties and PPE shortages. In addition, elective procedure volumes, a key source of profitability, are likely to continue to recover as hospitals as patients become more comfortable returning to postponed doctors’ appointments and get diagnoses again. At the same time, the combination of Covid-19 and the global response to it also recently led to a massive increase in U.S. unemployment. We expect the elevated unemployment (5.8% as of May 2021) to negatively impact health facilities, primarily by 1) increasing bad debt expense and charity care as well as by 2) lowering elective procedure volumes for the uninsured. Yet, demand for hospital services will likely remain relatively insulated in a recession when compared to many other industries. On the negative side, however, the Hospital Price Transparency rule went into effect January 1, 2021, which releases competitive information about payer-negotiated rates for common services and has led to negative headlines as many health care facilities try to make finding this data on their websites difficult. The federal government has passed a series of stimulus bills to address Covid-19’s impact. The bills provided $178 billion to health care providers through the Provider Relief Fund, in addition to Medicare and Medicaid provisions. This includes payments for uninsured patients, a 20% boost to Medicare rates on Covid-19 cases, and sweeping reimbursement increases, which should significantly aide hospitals.

Why Focus on Undervalued Healthcare Facilities & 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 Healthcare Facilities & 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 Healthcare Facilities & Services industry for Thursday, April 13, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the Healthcare Facilities & Services 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.

American Well Corp’s Value Grade

Value Grade:

American Well Corporation is an enterprise software company. The Company's Amwell Platform provides all digital health needs from urgent to acute and post-acute care, as well as chronic care management and healthy living. The Amwell Platform enables digital across the full healthcare continuum, including urgent and primary care, second opinion services, behavioral health, chronic condition management and high acuity specialty consults, such as telestroke and telepsychiatry, in the hospital. It supports both on-demand and scheduled consultations for providers and offers pre-packaged care modules and programs. The Amwell Platform can be fully integrated into its client?s health plan member and patient portals and provider and health plan workflows. It enables the digital care programs of approximately 55 health plans, which collectively represent approximately 90 million covers lives, as well as approximately 140 of the nation?s health systems, representing approximately 2,000 hospitals.

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.

American Well Corp has a Value Score of 74, which is considered to be undervalued.

When you look at American Well Corp’s price-to-sales ratio at 2.08 compared to the industry median at 1.18, this company has a higher price relative to revenue compared to its peers. This could make American Well Corp’s stock less attractive for value investors.

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. American Well Corp’s shareholder yield is higher than its industry median ratio of (1.50%). 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. American Well Corp’s price-to-book ratio is lower than its industry median ratio of 2.24. This could make American Well Corp more attractive to investors looking for a new addition to their portfolio.

CRYO-CELL International, Inc.’s Value Grade

Value Grade:

Cryo-Cell International, Inc. is a cord blood banking company. The Company operates through three segments: cellular processing and cryogenic storage for family use, with a focus on the collection and preservation of umbilical cord blood and tissue stem cells; manufacture of PrepaCyte CB Processing System (PrepaCyte CB) units, the processing technology used to process umbilical cord blood stem cells, and cellular processing and cryogenic storage of umbilical cord blood stem cells for public use. The Company stores approximately 500,000 cord blood and cord tissue specimens. The specimens are stored in commercially available cryogenic storage units at this technologically and operationally advanced facility. The Company markets its cord blood stem cell preservation services directly to expectant parents and by distributing information through obstetricians, pediatricians, childbirth educators, certified nurse-midwives, and other related healthcare professionals.

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.

CRYO-CELL International, Inc. has a Value Score of 69, which is considered to be undervalued.

CRYO-CELL International, Inc.’s price-earnings ratio is 11.5 compared to the industry median at 22.7. This means that it has a lower price relative to its earnings compared to its peers. This makes CRYO-CELL International, Inc. more attractive for value investors.

You can read more about CRYO-CELL International, 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.

DLH Holdings Corp’s Value Grade

Value Grade:

DLH Holdings Corp. is a provider of technology-enabled business process outsourcing, program management solutions, and public health research and analytics. The Company's services and solutions include Defense and Veteran Health Solutions, Human Services and Solutions, Public Health and Life Sciences and Infinibyte Cloud Services. Its Defense and Veteran Health Solutions provides critical healthcare, technology, and logistics solutions. Its Human Services and Solutions combines subject matter expertise in information technology and analytics to provide program monitoring and evaluation; electronic medical records migration; data collection and management; and nutritional and social health assessments. Its Public Health and Life Sciences solutions include clinical trials, epidemiology studies, advancing disease prevention methods and health promotion to at-risk communities. It also offers Infinibyte Cloud as a platform-as-a-service cloud service to United States government agencies.

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.

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

DLH Holdings Corp’s price-earnings ratio is 8.7 compared to the industry median at 22.7. This means that it has a lower price relative to its earnings compared to its peers. This makes DLH Holdings Corp more attractive for value investors.

DLH Holdings Corp’s price-to-book ratio is higher than its peers. This could make DLH Holdings Corp less attractive for value investors when compared to the industry median at 2.24.

You can read more about DLH Holdings 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.

Veritas Farms Inc’s Value Grade

Value Grade:

Veritas Farms Inc. is a vertically integrated agriculture business, which is focused on growing, producing, marketing and distributing superior quality, whole plant, full spectrum hemp oils and extracts containing naturally occurring phytocannabinoids (collectively, CBD). Veritas Farms owns and operates an approximately 140 acres farm in Pueblo, Colorado, capable of producing approximately 200,000 full spectrum hemp plants, which can potentially yield a minimum annual harvest of 250,000-300,000 pounds of outdoor-grown industrial hemp. The Company also operates approximately 15,000 square feet of climate-controlled greenhouses to produce a consistent supply of year-round indoor-cultivated hemp. In addition, there is an approximately 10,000 square foot onsite facility used for processing raw hemp, oil extraction, formulation laboratories and quality/purity testing. The Company primarily conducts its business operations through its subsidiary, 271 Lake Davis Holdings, LLC.

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.

Veritas Farms Inc has a Value Score of 72, which is considered to be undervalued.

Veritas Farms Inc’s price-to-book ratio is higher than its peers. This could make Veritas Farms Inc less attractive for value investors when compared to the industry median at 2.24.

You can read more about Veritas Farms 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 Healthcare Facilities & 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 Healthcare Facilities & Services stocks as well as other industrys.

Choosing Which of the 4 Best Healthcare Facilities & 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.

• American Well Corp stock has a Value Grade of B.
• CRYO-CELL International, Inc. stock has a Value Grade of B.
• DLH Holdings Corp stock has a Value Grade of B.
• Veritas Farms Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 4 undervalued stocks in the Healthcare Facilities & 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.

Additional Resources About Healthcare Facilities & Services Stocks

Want to learn more about Healthcare Facilities & 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.

• 4 Undervalued Healthcare Facilities & Services Stocks for Thursday, April 13
• 6 Undervalued Healthcare Facilities & Services Stocks for Wednesday, April 12
• Why InnovAge Holding Corp’s (INNV) Stock Is Down 4.27%
• Why ModivCare Inc’s (MODV) Stock Is Down 4.07%

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