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.

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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 Tuesday, July 25, 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 76, which is considered to be undervalued.

When you look at Aligos Therapeutics Inc’s price-to-sales ratio at 2.81 compared to the industry median at 8.84, 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 0.5, when compared to the industry median of 0.6, 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. Aligos Therapeutics Inc’s shareholder yield is higher than its industry median ratio of (6.14%). 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 1.68. This could make Aligos Therapeutics Inc more attractive to investors looking for a new addition to their portfolio.

Calcimedica Inc’s Value Grade

Value Grade:

CalciMedica, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on developing therapies for life-threatening inflammatory diseases with high unmet needs. Its technology targets the inhibition of Calcium Release-Activated Calcium (CRAC) channels designed to modulate the immune response and protect against tissue cell injury, with the potential to provide therapeutic benefits in life-threatening inflammatory diseases. CRAC channels serve to replenish calcium levels in the endoplasmic reticulum (ER) and provide calcium for cellular signaling events. Its lead product candidate, Auxora, is an intravenous-formulated, small molecule CRAC channel inhibitor. Auxora has the capability to modulate the immune response and protect against tissue cell injury, addressing inflammatory diseases, such as acute pancreatitis (AP), asparaginase-associated acute pancreatitis (AAP), acute kidney injury (AKI), and acute hypoxemic respiratory 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.

Calcimedica Inc has a Value Score of 100, which is considered to be undervalued.

Calcimedica Inc’s price-to-book ratio is higher than its peers. This could make Calcimedica Inc less attractive for value investors when compared to the industry median at 1.68.

You can read more about Calcimedica 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.

Creative Medical Technology Holdings Inc’s Value Grade

Value Grade:

Creative Medical Technology Holdings, Inc. is a commercial stage biotechnology company. The Company is focused on the advancement of identifying and translating novel biological therapeutics in the fields of immunotherapy, endocrinology, urology, neurology, and orthopedics. The Company conducts its commercial operations through its subsidiary, Creative Medical Technologies, Inc. (CMT). CMT markets and sells its CaverStem and FemCelz disposable kits utilized by physicians to perform autologous procedures that treat erectile dysfunction and female sexual dysfunction, respectively. The CaverStem and FemCelz kits are available through physicians at eight locations in the United States. Its products include StemSpine, ImmCelz, and OvaStem. StemSpine is a regenerative stem cell procedure for the treatment of degenerative disc disease. ImmCelz is a universal donor stem cell therapy for stroke treatment. OvaStem is a stem cell therapy for premature ovarian 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.

Creative Medical Technology Holdings Inc has a Value Score of 71, which is considered to be undervalued.

Creative Medical Technology Holdings Inc’s price-to-book ratio is higher than its peers. This could make Creative Medical Technology Holdings Inc less attractive for value investors when compared to the industry median at 1.68.

You can read more about Creative Medical Technology 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.

Context Therapeutics Inc’s Value Grade

Value Grade:

Context Therapeutics Inc. is a biopharmaceutical company focused on improving the lives of patients living with solid tumors. The Company is developing CTIM-76, a selective Claudin 6 (CLDN6) x CD3 bispecific antibody for CLDN6-positive tumors. Its preclinical program, CTIM-76, is an anti-Claudin 6 x anti-CD3 (CLDN6xCD3) antigen bispecific monoclonal antibody (bsAb) that is intended to redirect T-cell-mediated lysis toward malignant cells expressing CLDN6. CLDN6 is a tight junction membrane protein target expressed in multiple solid tumors, including ovarian, lung, and testicular, and absent from or expressed at low levels in healthy adult tissues. CTIM-76 is a Claudin 6 and CD3 bispecific antibody capable of binding to tumor cells expressing Claudin 6 and stimulating intra-tumoral T cells by the CD3 arm that is designed to be activated only upon tumor engagement. Claudin 6 is expressed on multiple solid tumors such as ovarian, lung and testicular.

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.

Context Therapeutics Inc has a Value Score of 93, which is considered to be undervalued.

Context Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Context Therapeutics Inc less attractive for value investors when compared to the industry median at 1.68.

You can read more about Context 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.

Geovax Labs Inc’s Value Grade

Value Grade:

GeoVax Labs, Inc. is a clinical-stage biotechnology company. The Company is focused on developing human vaccines and immunotherapies against infectious diseases and solid tumor cancers using its platforms. Its product pipeline includes ongoing human clinical trials for a COVID-19 and a gene-directed therapy against advanced head and neck cancers. It is developing a number of vaccines and immunotherapies for prevention or treatment of infectious diseases and cancers. Its product candidate includes GEO-CM04S1, GEO-CM02, Gedeptin, MVA-VLP-MUC1, GEO-ZM02, GEO-EM01, GEO-LM01 and GEO-MM02. Its lead infectious disease candidate is GEO-CM04S1, a COVID-19 vaccine targeting high-risk immunocompromised patient populations. Its research and development programs include preventive vaccines against Monkeypox (MPox), hemorrhagic fever viruses (Ebola Zaire, Ebola Sudan, Marburg and Lassa) and Zika virus, as well as immunotherapies for multiple solid tumors. Its wholly owned subsidiary is GeoVax, Inc.

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.

Geovax Labs Inc has a Value Score of 69, which is considered to be undervalued.

Geovax Labs Inc’s price-to-book ratio is higher than its peers. This could make Geovax Labs Inc less attractive for value investors when compared to the industry median at 1.68.

You can read more about Geovax Labs 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.

Infinity Pharmaceuticals Inc.’s Value Grade

Value Grade:

Infinity Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company that is focused on developing medicines for people with cancer. The Company is focused on advancing eganelisib, also known as IPI-549, an orally administered, clinical-stage, immuno-oncology product candidate that reprograms macrophages through selective inhibition of the enzyme phosphoinositide-3-kinase-gamma (PI3K-gamma). Its eganelisib clinical development program includes MAcrophage Reprogramming in Immuno-Oncology-3 (MARIO-3), MARIO-275 and MARIO-1. MARIO-3 is a multi-arm Phase II study designed to evaluate eganelisib in the front-line treatment for both metastatic triple-negative breast cancer (TNBC), and renal cell carcinoma (RCC). MARIO-275 is its global, randomized, placebo-controlled Phase II study evaluating the effect of adding eganelisib to nivolumab, also known as Opdivo, in checkpoint-naive advanced urothelial cancer (UC). MARIO-1 is in the Phase I/Ib clinical study.

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.

Infinity Pharmaceuticals Inc. has a Value Score of 61, which is considered to be undervalued.

You can read more about Infinity 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.

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.
• Calcimedica Inc stock has a Value Grade of A.
• Creative Medical Technology Holdings Inc stock has a Value Grade of B.
• Context Therapeutics Inc stock has a Value Grade of A.
• Geovax Labs Inc stock has a Value Grade of B.
• Infinity Pharmaceuticals 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 Tuesday, July 25
• What You Need to Know About Medpace Holdings Inc's Q2 Earnings
• 3 Undervalued Biotechnology & Medical Research Stocks for Monday, July 24
• Why 2Seventy Bio Inc’s (TSVT) Stock Is Down 5.84%

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