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 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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7 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 7 undervalued stocks in the Healthcare Facilities & Services industry for Wednesday, May 03, 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.

ATI Physical Therapy Inc’s Value Grade

Value Grade:

ATI Physical Therapy, Inc. is a healthcare company. It is an outpatient physical therapy provider in the United States. It specializes in outpatient rehabilitation and adjacent healthcare services, with approximately 923 clinics. It offers a variety of services within its clinics, including physical therapy to treat spine, shoulder, knee and neck injuries or pain; work injury rehabilitation services, including work conditioning and work hardening; hand therapy; and other specialized treatment services. It provides services through its ATI Worksite Solutions (AWS) program, Management Service Agreements (MSA), and Sports Medicine arrangements. AWS is an on-site service that provides customized cost-saving injury prevention programs, work-related injury assessment services, wellness offerings and consultations for employers. MSA arrangements provides management and physical therapy-related services to physician-owned physical therapy clinics. It offers sports physical therapy 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.

ATI Physical Therapy Inc has a Value Score of 69, which is considered to be undervalued.

When you look at ATI Physical Therapy Inc’s price-to-sales ratio at 0.08 compared to the industry median at 1.18, this company has a lower price relative to revenue compared to its peers. This could make ATI Physical Therapy 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. ATI Physical Therapy Inc’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. ATI Physical Therapy Inc’s price-to-book ratio is lower than its industry median ratio of 1.99. This could make ATI Physical Therapy Inc more attractive to investors looking for a new addition to their portfolio.

CVS Health Corp’s Value Grade

Value Grade:

CVS Health Corporation, together with its subsidiaries, is a diversified health solutions company. The Company operates through four segments: Health Care Benefits, Pharmacy Services, Retail/LTC and Corporate/Other. The Health Care Benefits segment offers a range of traditional, voluntary, and consumer-directed health insurance products and related services. The Pharmacy Services segment provides a range of pharmacy benefit management (PBM) solutions, including plan design offerings and administration, formulary management, retail pharmacy network management services and mail order pharmacy. It also provides various administrative, management and reporting services to pharmaceutical manufacturers. The Retail/LTC segment sells prescription drugs and a range of health and wellness products and general merchandise, provides health care services and provides medical diagnostic testing, administers vaccinations for illnesses such as influenza, COVID-19 and shingles.

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.

CVS Health Corp has a Value Score of 72, which is considered to be undervalued.

CVS Health Corp’s price-earnings ratio is 23.3 compared to the industry median at 22.6. This means that it has a higher price relative to its earnings compared to its peers. This makes CVS Health Corp less attractive for value investors.

CVS Health Corp’s price-to-book ratio is higher than its peers. This could make CVS Health Corp less attractive for value investors when compared to the industry median at 1.99.

You can read more about CVS Health 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.

Community Health Systems Inc’s Value Grade

Value Grade:

Community Health Systems, Inc. is an operator of general acute care hospitals and outpatient facilities in communities across the United States. The Company provides healthcare services through the hospitals that it owns and operates and affiliated businesses in non-urban and selected urban markets throughout the United States. The Services provided through its hospitals and affiliated businesses include general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric and rehabilitation services. It also provides additional outpatient services at primary care practices, urgent care centers, free-standing emergency departments, ambulatory surgery centers, imaging and diagnostic centers, retail clinics and via direct-to-consumer virtual health visits. Its subsidiaries own or lease approximately 79 affiliated hospitals with approximately 13,000 beds and operate more than 1,000 sites of care.

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.

Community Health Systems Inc has a Value Score of 67, which is considered to be undervalued.

You can read more about Community Health Systems 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.

Davita Inc’s Value Grade

Value Grade:

DaVita Inc. is a healthcare provider. The Company provides kidney care services in the United States. The Company's operations are comprised of its U.S. dialysis and related lab services business (its U.S. dialysis business), its U.S. integrated kidney care business, its U.S. other ancillary services and its international operations (its ancillary services). The U.S. dialysis and related lab services (U.S. dialysis) business treats patients with chronic kidney failure, and end-stage kidney disease (ESKD). Its services include outpatient hemodialysis services, hospital inpatient hemodialysis services, and home-based dialysis services. The ancillary services consist of integrated kidney care services, physician services, clinical research programs, and transplant software business, as well as international operations. The Company operates approximately 2,724 outpatient dialysis centers in the United States.

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.

Davita Inc has a Value Score of 62, which is considered to be undervalued.

Davita Inc’s price-earnings ratio is 15.7 compared to the industry median at 22.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Davita Inc more attractive for value investors.

Davita Inc’s price-to-book ratio is lower than its peers. This could make Davita Inc more attractive for value investors when compared to the industry median at 1.99.

You can read more about Davita 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.

Enhabit Inc’s Value Grade

Value Grade:

Enhabit, Inc. is a provider of home health and hospice services. Its segments include Home Health and Hospice. The Home Health segment provides a range of Medicare-certified skilled home health services, including skilled nursing, physical, occupational and speech therapy, medical social work, and home health aide services. The Home Health segment has a diversity of referral sources, with patients arriving from acute care hospitals, inpatient rehabilitation facilities, surgery centers, assisted living facilities, and skilled nursing facilities, as well as community physicians. The Hospice segment provides hospice services to terminally ill patients and their families. Its Medicare-certified hospice operations provide a full range of hospice services, including pain and symptom management, palliative and dietary counseling, social worker visits, spiritual counseling, and family member bereavement counseling. The Company has over 252 home health agencies and 105 hospice 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.

Enhabit Inc has a Value Score of 80, which is considered to be undervalued.

Enhabit Inc’s price-to-book ratio is higher than its peers. This could make Enhabit Inc less attractive for value investors when compared to the industry median at 1.99.

You can read more about Enhabit 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.

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 6.4 compared to the industry median at 22.6. 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 1.99.

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.

Novo Integrated Sciences Inc’s Value Grade

Value Grade:

Novo Integrated Sciences, Inc. is a parent company to its subsidiaries. The Company owns Canadian and United States subsidiaries that provide, or intend to provide, essential and differentiated solutions to the delivery of multidisciplinary primary care and related wellness products through the integration of medical technology, interconnectivity, advanced therapeutic, diagnostic solutions, personalized product offerings, and rehabilitative science. The Company operates through two segments: Healthcare Services and Product Sales. Its specialized multidisciplinary primary healthcare services include physiotherapy, chiropractic care, manual/manipulative therapy, occupational therapy, eldercare, massage therapy, acupuncture and functional dry needling, chiropody, stroke and traumatic brain injury/neurological rehabilitation, kinesiology, vestibular therapy, dietician and others. Its subsidiaries include Novo Healthnet Limited, Novomerica Health Group, Inc., PRO-DIP, LLC and others.

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.

Novo Integrated Sciences Inc has a Value Score of 80, which is considered to be undervalued.

Novo Integrated Sciences Inc’s price-to-book ratio is higher than its peers. This could make Novo Integrated Sciences Inc less attractive for value investors when compared to the industry median at 1.99.

You can read more about Novo Integrated Sciences 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 7 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.

• ATI Physical Therapy Inc stock has a Value Grade of B.
• CVS Health Corp stock has a Value Grade of B.
• Community Health Systems Inc stock has a Value Grade of B.
• Davita Inc stock has a Value Grade of B.
• Enhabit Inc stock has a Value Grade of B.
• Fulgent Genetics Inc stock has a Value Grade of A.
• Novo Integrated Sciences 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 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.

• 7 Undervalued Healthcare Facilities & Services Stocks for Wednesday, May 03
• 5 Undervalued Healthcare Facilities & Services Stocks for Tuesday, May 02
• Why Acadia Healthcare Company Inc’s (ACHC) Stock Is Down 4.68%
• Why Accolade Inc’s (ACCD) Stock Is Down 6.53%

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