Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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.

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

6 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 6 undervalued stocks in the Biotechnology & Medical Research industry for Friday, May 12, 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.

Aligos Therapeutics Inc’s Value Grade

Value Grade:

Aligos Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing therapeutics to address unmet medical needs in viral infections and liver diseases. It uses its small molecule and oligonucleotide platforms to develop pharmacologically optimized drug candidates for use in combination regimens. Its primary area of focus is on developing functional cure for nonalcoholic steatohepatitis (NASH) and to develop drug candidates with coronavirus activity, as well as seeks to enhance the rate of functional cure for chronic hepatitis B (CHB). It has developed a portfolio of differentiated drug candidates for CHB, including a small molecule capsid assembly modulator (CAM-E) and oligonucleotide small interfering ribonucleic acids (siRNA), each of which is designed against clinically validated targets in the hepatitis B virus (HBV) life cycle. Its pipeline includes ALG-055009 for the treatment of NASH; ALG-000184 and ALG-125755 for CHB, and ALG-097558 for coronavirus.

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.

Aligos Therapeutics Inc has a Value Score of 69, which is considered to be undervalued.

When you look at Aligos Therapeutics Inc’s price-to-sales ratio at 3.45 compared to the industry median at 8.43, this company has a lower price relative to revenue compared to its peers. This could make Aligos Therapeutics Inc’s stock more attractive for value investors.

Now, let’s assess Aligos Therapeutics Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 0.4, 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. Aligos Therapeutics Inc’s shareholder yield is higher than its industry median ratio of (6.31%). 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. Aligos Therapeutics Inc’s price-to-book ratio is lower than its industry median ratio of 1.69. This could make Aligos Therapeutics Inc more attractive to investors looking for a new addition to their portfolio.

Aptevo Therapeutics Inc’s Value Grade

Value Grade:

Aptevo Therapeutics Inc. is a clinical-stage biotechnology company. It is focused on developing novel immunotherapy candidates for the treatment of different forms of cancer. It has developed two versatile and enabling platform technologies for rational design of precision immune modulatory drugs. Its lead clinical candidates, APVO436 and ALG.APV-527, and preclinical candidates, APVO603 and APVO711, are developed using its ADAPTIR modular protein technology platform. Its preclinical candidate APVO442 is developed using its ADAPTIR-FLEX modular protein technology platform. APVO436 is a bispecific ADAPTIR that is designed to engage CD3 and CD123 to redirect T-cells to destroy leukemia cells expressing the target CD123 molecule on their surface. ALG.APV-527 is a novel investigational bispecific ADAPTIR candidate. APVO603 is a preclinical dual agonist bispecific ADAPTIR candidate designed to simultaneously target 4-1BB (CD137) and OX40 (CD134), both members of the TNF-receptor family.

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.

Aptevo Therapeutics Inc has a Value Score of 79, which is considered to be undervalued.

Aptevo Therapeutics Inc’s price-earnings ratio is 1.2 compared to the industry median at 15.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Aptevo Therapeutics Inc more attractive for value investors.

Aptevo Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Aptevo Therapeutics Inc less attractive for value investors when compared to the industry median at 1.69.

You can read more about Aptevo 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.

Genetron Holdings Ltd - ADR’s Value Grade

Value Grade:

Genetron Holdings Limited is a precision oncology company that specializes in cancer molecular profiling and harnesses technologies in molecular biology and data science to transform cancer treatment. The Company has developed a comprehensive product and service portfolio that cover the full-cycle of cancer care from early screening, to diagnosis and treatment recommendations, to continuous monitoring and continuous care. The Company operates its businesses primarily within the China market.

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.

Genetron Holdings Ltd - ADR has a Value Score of 69, which is considered to be undervalued.

Genetron Holdings Ltd - ADR’s price-to-book ratio is higher than its peers. This could make Genetron Holdings Ltd - ADR less attractive for value investors when compared to the industry median at 1.69.

You can read more about Genetron Holdings Ltd - 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.

Lumos Pharma Inc’s Value Grade

Value Grade:

Lumos Pharma, Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in advancing its clinical program and focused on identifying, acquiring, developing, and commercializing products and new therapies for people with rare diseases. Its pipeline is focused on the development of an orally administered small molecule, LUM-201, which is a growth hormone (GH) secretagogue, also called ibutamoren, for rare endocrine disorders that require injectable recombinant human growth hormone (rhGH). LUM-201 is a tablet formulation that is intended to be administered once daily. LUM-201 stimulates GH via the GH secretagogue receptor (GHSR1a), also known as the ghrelin receptor, and also suppresses the release of somatostatin, thus providing a differentiated mechanism of action to treat some rare endocrine disorders (involving a deficiency of GH) by increasing the amplitude of endogenous, pulsatile GH secretion. Lumos Pharma Sub, Inc. (Private Lumos) is its subsidiary.

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.

Lumos Pharma Inc has a Value Score of 73, which is considered to be undervalued.

Lumos Pharma Inc’s price-to-book ratio is higher than its peers. This could make Lumos Pharma Inc less attractive for value investors when compared to the industry median at 1.69.

You can read more about Lumos Pharma 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.

Mind Medicine (MindMed) Inc’s Value Grade

Value Grade:

Mind Medicine (MindMed) Inc. is a Canada-based clinical-stage biopharmaceutical company. The Company is engaged in developing products to treat brain health disorders, with a particular focus on psychiatry, addiction, pain and neurology. The Company is developing a pipeline of drug candidates, targeting the serotonin, dopamine and acetylcholine systems. This specifically includes pharmaceutically optimized drug products derived from the psychedelic and empathogen drug classes, including lysergic acid diethylamide (LSD), R(-)-methylenedioxymethamphetamine (MDMA) and zolunicant, or 18-methoxycoronaridine (MC), a congener of ibogaine. The Company’s subsidiaries include Mind Medicine, Inc. (MindMed US), HealthMode, Inc., MindMed Pty Ltd., and MindMed GmbH.

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.

Mind Medicine (MindMed) Inc has a Value Score of 70, which is considered to be undervalued.

Mind Medicine (MindMed) Inc’s price-to-book ratio is higher than its peers. This could make Mind Medicine (MindMed) Inc less attractive for value investors when compared to the industry median at 1.69.

You can read more about Mind Medicine (MindMed) 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.

Syneos Health Inc’s Value Grade

Value Grade:

Syneos Health, Inc. is a biopharmaceutical solutions company that utilizes outsourced clinical drug development and commercialization services. The Company operates through two business segments: Clinical Solutions and Commercial Solutions. The Clinical Solutions segment offers global services for the development of diagnostics, drugs, biologics, devices, and digital therapeutics that span Phase I to IV of clinical development. The Clinical Solutions segment offers individual services including product development, project management, protocol development, investigational site recruitment, and clinical monitoring. The Commercial Solutions segment provides commercialization services, including deployment solutions, communications solutions (public relations, advertising, and medical communications), and consulting services. The Company?s customers include small, mid-sized, and large companies in the biopharmaceutical, biotechnology, and medical device industries.

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.

Syneos Health Inc has a Value Score of 61, which is considered to be undervalued.

Syneos Health Inc’s price-earnings ratio is 16.2 compared to the industry median at 15.4. This means that it has a higher price relative to its earnings compared to its peers. This makes Syneos Health Inc less attractive for value investors.

Syneos Health Inc’s price-to-book ratio is higher than its peers. This could make Syneos Health Inc less attractive for value investors when compared to the industry median at 1.69.

You can read more about Syneos Health 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 6 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.

• Aligos Therapeutics Inc stock has a Value Grade of B.
• Aptevo Therapeutics Inc stock has a Value Grade of B.
• Genetron Holdings Ltd - ADR stock has a Value Grade of B.
• Lumos Pharma Inc stock has a Value Grade of B.
• Mind Medicine (MindMed) Inc stock has a Value Grade of B.
• Syneos Health Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Biotechnology & Medical Research Stocks for Friday, May 12
• Which Is a Better Investment, Charles River Laboratories Intl. Inc or Crispr Therapeutics AG Stock?
• Which Is a Better Investment, Crispr Therapeutics AG or Galapagos NV - ADR Stock?
• Which Is a Better Investment, Crispr Therapeutics AG or ImmunoGen, Inc. Stock?

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.