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.

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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 Thursday, May 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.

Akumin Inc’s Value Grade

Value Grade:

Akumin Inc. is a provider of radiology and oncology solutions to hospitals, health systems and physician groups. The Company operates through two segments: Radiology and Oncology. The Company provides fixed-site outpatient radiology and oncology services through a network of approximately 234 owned and/or operated centers, as well as outpatient radiology and oncology solutions to approximately 1,000 hospitals and health systems across 48 states. Its imaging procedures include magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET and PET/CT), ultrasound, diagnostic radiology (X-ray), mammography and other related procedures. Its cancer care services include a full suite of radiation therapy and related offerings.

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.

Akumin Inc has a Value Score of 85, which is considered to be undervalued.

When you look at Akumin Inc’s price-to-sales ratio at 0.05 compared to the industry median at 1.25, this company has a lower price relative to revenue compared to its peers. This could make Akumin Inc’s stock more attractive for value investors.

Now, let’s assess Akumin Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 10.4, when compared to the industry median of 13.6, 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. Akumin Inc’s shareholder yield is higher than its industry median ratio of (1.56%). 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.

Lastly, let’s take a look at Akumin Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Akumin Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 17.90. This could make Akumin Inc more attractive because the lower P/FCF ratio indicates that Akumin Inc is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

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 12.9 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 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 2.28.

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.

Item 9 Labs Corp’s Value Grade

Value Grade:

Item 9 Labs Corp. is a vertically integrated cannabis operator and dispensary franchisor delivering premium products from its large-scale cultivation and production facilities in the United States. The Item 9 Labs brand specializes in products and user experience across several cannabis categories. The Company also offers a dispensary franchise model through the national Unity Rd. retail brand. The Company offers approximately 75 active cannabis strains and more than 150 differentiated cannabis vaporizer (vape) products, as well as premium concentrates and Orion vape technologies. The Company's Item 9 Labs brand specializes in select products and user experience across several cannabis categories. The Company operates through two segments: Cultivation and Franchising. Its product lines include Item 9 Labs Flower, Item 9 Labs Concentrates, and Orion 710.

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.

Item 9 Labs Corp has a Value Score of 86, which is considered to be undervalued.

Item 9 Labs Corp’s price-to-book ratio is higher than its peers. This could make Item 9 Labs Corp less attractive for value investors when compared to the industry median at 2.28.

You can read more about Item 9 Labs 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.

Talkspace Inc’s Value Grade

Value Grade:

Talkspace, Inc. is a behavioral healthcare company, which offers access to a fully credentialed network of licensed therapists, psychologists and psychiatrists. Through its platform, the Company provides psychotherapy and psychiatry services to individuals, enterprises and health plans through both business-to-business (B2B) and business-to-customer (B2C) channels. In psychotherapy or talk therapy, members work with a licensed therapist or counsellor to treat specific mental health conditions, such as depression or anxiety, trauma and other human challenges, including by developing positive thinking and coping skills. In psychotherapy, the Company offers text, audio and video-based psychotherapy from licensed therapists. In psychiatry, members receive personalized, care from a prescriber who specializes in mental healthcare and prescription management. The Company offers its members a robust ecosystem for end-to-end behavioral healthcare.

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.

Talkspace Inc has a Value Score of 66, which is considered to be undervalued.

Talkspace Inc’s price-to-book ratio is higher than its peers. This could make Talkspace Inc less attractive for value investors when compared to the industry median at 2.28.

You can read more about Talkspace 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.

US NeuroSurgical Holdings Inc’s Value Grade

Value Grade:

U.S. NeuroSurgical Holdings, Inc. owns and operates, through its wholly owned subsidiaries, stereotactic radiosurgery centers, utilizing gamma knife technology, and holds other interests in radiological treatment facilities. The Company's subsidiary, U.S. NeuroSurgical, Inc. (USN), which owns and operates stereotactic radiosurgery centers and utilizes the gamma knife technology. The Company owns, or holds interests in, the gamma knife and radiation treatment centers, and charges the hospital or medical facility, where the unit is housed and maintained, based on utilization. The Company also focused on developing cancer centers featuring radiation therapy. These centers utilize linear accelerators with Intensity Modulated Radiation Therapy (IMRT) and Image Guided Radiation Therapy (IGRT) capabilities. The Company's principal target market is medical centers in health care catchment areas that have physicians experienced with and dedicated to the use of the gamma knife.

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.

US NeuroSurgical Holdings Inc has a Value Score of 92, which is considered to be undervalued.

US NeuroSurgical Holdings Inc’s price-to-book ratio is higher than its peers. This could make US NeuroSurgical Holdings Inc less attractive for value investors when compared to the industry median at 2.28.

You can read more about US NeuroSurgical Holdings 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.

• Akumin Inc stock has a Value Grade of A.
• DLH Holdings Corp stock has a Value Grade of B.
• Item 9 Labs Corp stock has a Value Grade of A.
• Talkspace Inc stock has a Value Grade of B.
• US NeuroSurgical Holdings 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 Thursday, May 18
• 4 Undervalued Healthcare Facilities & Services Stocks for Wednesday, May 17
• Why Airsculpt Technologies Inc’s (AIRS) Stock Is Up 6.58%
• Why CorVel Corporation’s (CRVL) Stock Is Down 4.15%

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