Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 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.

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

5 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 5 undervalued stocks in the Healthcare Facilities & Services industry for Tuesday, April 18, 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.

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.

When you look at DLH Holdings Corp’s price-to-sales ratio at 0.44 compared to the industry median at 1.16, this company has a lower price relative to revenue compared to its peers. This could make DLH Holdings Corp’s stock more attractive for value investors.

DLH Holdings Corp’s price-earnings ratio is 8.74 compared to the industry median at 22.48. This means it has a lower share price relative to earnings compared to its peers. This could make DLH Holdings Corp more attractive for value investors.

Now, let’s assess DLH Holdings Corp’s EV/EBITDA ratio, also known as enterprise multiple. At 9.6, when compared to the industry median of 11.8, 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. DLH Holdings Corp’s shareholder yield is lower 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. DLH Holdings Corp’s price-to-book ratio is lower than its industry median ratio of 2.31. This could make DLH Holdings Corp more attractive to investors looking for a new addition to their portfolio.

Fulgent Genetics Inc’s Value Grade

Value Grade:

Fulgent Genetics, Inc. is a technology-based company with a clinical diagnostic business and a therapeutic development business. The Company's clinical diagnostic business offers molecular diagnostic testing services, genetic testing, and anatomic pathology laboratory services designed to provide physicians and patients with clinically actionable diagnostic information. Its therapeutic development business is focused on developing drug candidates for treating a range of cancers using a nanoencapsulation and targeted therapy platform designed to improve the therapeutic window and pharmacokinetic profile (PK) profile of new and existing cancer drugs. Its business is built on its technology platform, which includes gene probes, data suppression and comparison algorithms, learning software, and laboratory information management systems. The Company's technology platform offers a test menu. The Company also offers next-generation sequencing (NGS) services.

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.

Fulgent Genetics Inc has a Value Score of 92, which is considered to be undervalued.

Fulgent Genetics Inc’s price-earnings ratio is 6.8 compared to the industry median at 22.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Fulgent Genetics Inc more attractive for value investors.

Fulgent Genetics Inc’s price-to-book ratio is higher than its peers. This could make Fulgent Genetics Inc less attractive for value investors when compared to the industry median at 2.31.

You can read more about Fulgent Genetics 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.

Greenrose Holding Company Inc’s Value Grade

Value Grade:

The Greenrose Holding Company Inc. is a multi-state cultivator and producer of cannabis brands and products. The Company, through its subsidiaries, Theraplant, LLC and True Harvest LLC is engaged in the manufacture and processing of cannabis in the adult-use and medical cannabis marketplace in Connecticut and Arizona. It owns and operates cannabis businesses or has management or consulting services or other agreements to assist in operations with licensed operators. The Company is focused on providing access to the cannabis and cannabinoid-based products through cultivation and processing facilities and customer engagement channels, in store, online and at home. Its primary areas of focus include cultivation and genetics; retail and distribution; processing/manufacturing; wholesale; and data and insights. The Company has approximately 63,500 square feet of canopy for cannabis cultivation.

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.

Greenrose Holding Company Inc has a Value Score of 95, which is considered to be undervalued.

Greenrose Holding Company Inc’s price-to-book ratio is higher than its peers. This could make Greenrose Holding Company Inc less attractive for value investors when compared to the industry median at 2.31.

You can read more about Greenrose Holding Company 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.

InterCure Ltd’s Value Grade

Value Grade:

InterCure Ltd is an Israel-based company primarily enagged in cannabis industry. Thorugh its wholly owned subsidiary Canndoc the Company operates as licensed cannabis producer and one of the first to offer Good Manufacturing Practices (GMP) certified and pharmaceutical-grade medical cannabis products.

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.

InterCure Ltd has a Value Score of 75, which is considered to be undervalued.

InterCure Ltd’s price-earnings ratio is 7.4 compared to the industry median at 22.5. This means that it has a lower price relative to its earnings compared to its peers. This makes InterCure Ltd more attractive for value investors.

InterCure Ltd’s price-to-book ratio is higher than its peers. This could make InterCure Ltd less attractive for value investors when compared to the industry median at 2.31.

You can read more about InterCure Ltd’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.

Skylight Health Group Inc’s Value Grade

Value Grade:

Skylight Health Group Inc. is a Canada-based healthcare services and technology company. The Company operates a United States multi-state health network that comprises physical multi-disciplinary medical clinics, providing a range of services from primary care, sub-specialty, allied health and diagnostic testing. Its segments include the United States and Canada. The United States segment include its medical services and the Canada segment includes its software and corporate businesses. The Company is focused on helping small and independent practices shift from a traditional fee-for-service (FFS) model to value-based care (VBC) through tools, including its own technology, data analytics and infrastructure.

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.

Skylight Health Group Inc has a Value Score of 92, which is considered to be undervalued.

Skylight Health Group Inc’s price-to-book ratio is higher than its peers. This could make Skylight Health Group Inc less attractive for value investors when compared to the industry median at 2.31.

You can read more about Skylight Health Group 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 5 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.

• DLH Holdings Corp stock has a Value Grade of B.
• Fulgent Genetics Inc stock has a Value Grade of A.
• Greenrose Holding Company Inc stock has a Value Grade of A.
• InterCure Ltd stock has a Value Grade of B.
• Skylight Health Group Inc stock has a Value Grade of A.

Now that you have a bit more background about each of the 5 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.

• 5 Undervalued Healthcare Facilities & Services Stocks for Tuesday, April 18
• 5 Undervalued Healthcare Facilities & Services Stocks for Monday, April 17
• Why Enhabit Inc’s (EHAB) Stock Is Down 5.31%
• Why NeoGenomics, Inc.’s (NEO) Stock Is Up 5.74%

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.