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 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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4 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 4 undervalued stocks in the Biotechnology & Medical Research industry for Wednesday, April 26, 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.

Phenomex Inc’s Value Grade

Value Grade:

PhenomeX Inc., formerly Berkeley Lights, Inc., is a functional cell biology company. The Company enables scientists to leverage each cell and drive the next generation of functional cell biology that will advance human health. The Company enables scientists to reveal insights into cell function and obtain a full view of the behavior of each cell. Its specific suite of proven tools and services offers unparalleled resolution and speed the insights that are key to advancing discoveries that can completely improve the prevention and treatment of disease. The Company?s platforms are used by researchers across the globe, including various global pharmaceutical companies and approximately 85% of United States cancer centers.

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.

Phenomex Inc has a Value Score of 63, which is considered to be undervalued.

When you look at Phenomex Inc’s price-to-sales ratio at 1.01 compared to the industry median at 8.23, this company has a lower price relative to revenue compared to its peers. This could make Phenomex Inc’s stock more 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. Phenomex Inc’s shareholder yield is higher than its industry median ratio of (5.90%). 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. Phenomex Inc’s price-to-book ratio is lower than its industry median ratio of 1.44. This could make Phenomex Inc more attractive to investors looking for a new addition to their portfolio.

CNS Pharmaceuticals Inc’s Value Grade

Value Grade:

CNS Pharmaceuticals, Inc. is a clinical-stage pharmaceutical company developing a pipeline of anti-cancer drug candidates for the treatment of primary and metastatic cancers of the brain and central nervous system (CNS). The Company's lead drug candidate, Berubicin, is a novel anthracycline and the first anthracycline to appear to cross the blood-brain barrier. Berubicin is in development for the treatment of a number of serious brain and CNS oncology indications, including glioblastoma multiforme (GBM), an aggressive and incurable form of brain cancer. In addition, the Company is advancing the development of its WP1244/WP1874 drug technology, which utilizes anthracycline and distamycin-based scaffolds to create small molecule agents. The Company is also evaluating the use of WP1244/WP1874 in the treatment of other primary brain and central nervous system cancers, as well as cancers metastatic to the brain including pancreatic, ovarian, and lymphomas.

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.

CNS Pharmaceuticals Inc has a Value Score of 77, which is considered to be undervalued.

CNS Pharmaceuticals Inc’s price-to-book ratio is higher than its peers. This could make CNS Pharmaceuticals Inc less attractive for value investors when compared to the industry median at 1.44.

You can read more about CNS 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.

Cardiol Therapeutics Inc’s Value Grade

Value Grade:

Cardiol Therapeutics Inc. (Cardiol) is a Canada-based clinical-stage life sciences company focused on the research and clinical development of anti-inflammatory therapies for the treatment of cardiovascular disease (CVD). The Company's lead product, CardiolRx, is a pharmaceutically produced oral cannabidiol formulation that is in a Phase II/III study in hospitalized patients testing positive for COVID-19 with a prior history of, or risk factors for, cardiovascular disease. Cardiol has also received clearance from the Food and Drug Administration (FDA) for its investigational new drug (IND) application for a Phase II international trial that investigates the anti-inflammatory and anti- fibrotic properties of CardiolRx in patients with acute myocarditis, which is a common cause of sudden cardiac death in people under 35 years of age. In addition, Cardiol is developing a subcutaneous formulation of CardiolRx and other anti-inflammatory therapies for the treatment of chronic heart failure.

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.

Cardiol Therapeutics Inc has a Value Score of 73, which is considered to be undervalued.

Cardiol Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Cardiol Therapeutics Inc less attractive for value investors when compared to the industry median at 1.44.

You can read more about Cardiol 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.

NuCana PLC (ADR)’s Value Grade

Value Grade:

NuCana plc is a United Kingdom-based clinical-stage biopharmaceutical company. The Company is focused on developing treatments for cancer patients using its ProTide technology. ProTide are designed to overcome cancer resistance mechanism and generate anti-cancer metabolites in cancer cells. The Company's pipeline includes Acelari, NUC-3373, and NUC-7738. Its ProTide candidates Acelari and NUC-3373 are chemical entities derived from the nucleotide analog and 5- fluorouracil, which are used as chemotherapy agents for the treatment of cancer. Acelari is in a Phase III study for patients with biliary tract cancer. NUC-3373 is in Phase I study for the treatment of a range of patients with solid tumors and a Phase I b study for patient with metastatic colorectal cancer. Its third ProTide candidate, NUC-7738, is a nucleotide analog (3’-deoxyadenosine) and is in Phase I study for patients with solid tumors.

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.

NuCana PLC (ADR) has a Value Score of 86, which is considered to be undervalued.

NuCana PLC (ADR)’s price-to-book ratio is higher than its peers. This could make NuCana PLC (ADR) less attractive for value investors when compared to the industry median at 1.44.

You can read more about NuCana PLC (ADR)’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 4 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.

• Phenomex Inc stock has a Value Grade of B.
• CNS Pharmaceuticals Inc stock has a Value Grade of B.
• Cardiol Therapeutics Inc stock has a Value Grade of B.
• NuCana PLC (ADR) stock has a Value Grade of A.

Now that you have a bit more background about each of the 4 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.

• 4 Undervalued Biotechnology & Medical Research Stocks for Wednesday, April 26
• 7 Undervalued Biotechnology & Medical Research Stocks for Tuesday, April 25
• Is GRI Bio Inc (GRI) Stock a Good Investment?
• Why AbCellera Biologics Inc’s (ABCL) Stock Is Down 6.14%

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