Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Advanced Medical Equipment & Technology 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 Advanced Medical Equipment & Technology Stock News

Before choosing which top Advanced Medical Equipment & Technology stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

There is a positive fundamental outlook for the life sciences tools & services (LSTS) sub-industry for the next year. In 2021, adjusted EPS are expected to grow, reversing the subpar growth seen in 2020, assuming a healthier economic environment globally. Expected R&D spending to continue to improve during 2021 as most of the clinical research that was put on hold resuming. Increase in demand for Covid-19 testing and related products and services are expected to remain until the pandemic is fully under control globally and continue to be a considerable tailwind for a number of LSTS companies. Risk factors are slower biopharma R&D spending growth and prolonged uncertainty in certain parts of the world due to Covid-19 as new variants of the virus emerged. The National Institutes of Health (NIH) budget has been growing over the last three years, increasing funding for academic and government labs. This in turn helps drive sales growth for many LSTS companies that supply these labs. The NIH budget for fiscal 2021 (Sep.) rose 3.0%, which is lower than 5.9% for fiscal 2020 and 5.4% growth for fiscal 2019. Yet, the NIH budget grew at a CAGR of 5.8% from 2016 through 2021, a sharp increase from the flat budget growth from 2012 through 2015. The Covid-19 pandemic had a considerable impact on the sub-industry in 2020 due to the moderation in biopharma R&D spending, disruptions in clinical sites accessibility, slowdown in patient enrollments for clinical studies, and a decline in the demand for large-scale life sciences equipment with investments delayed. Yet, gradual improvement throughout 2020 were seen and a solid recovery in Q1, as countries re-opened and operations resumed with a faster-thananticipated recovery in Asia (especially China) as a result of pent-up demand, in our view. Yet, despite the increased pace of Covid-19 vaccinations in the U.S., with the emergence of new more dangerous variants and the slower pace of vaccinations in the rest of the world, the speed and sustainability of the recovery remain unclear, in our view.

Why Focus on Undervalued Advanced Medical Equipment & Technology 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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3 Undervalued Advanced Medical Equipment & Technology Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Advanced Medical Equipment & Technology industry for Wednesday, July 26, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the Advanced Medical Equipment & Technology 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.

LogicMark Inc’s Value Grade

Value Grade:

LogicMark, Inc. provides personal emergency response systems (PERS), health communications devices, and Internet of Things (IoT) technology that creates a connected care platform. The Company's PERS devices incorporate two-way voice communication technology directly in the medical alert pendant. These PERS technologies are sold direct-to-consumer through the Company's e-commerce Website, through dealers and distributors, as well as through the United States Veterans Health Administration (the VHA). The Company provides no monthly fee products, which only require a one-time purchase expense, instead of a contract with recurring monthly charges. Its no monthly fee products contact family, friends, or 911 directly, eliminating the recurring monthly fee from a monitoring center. Its PERS products include GUARDIAN ALERT 911 PLUS, FREEDOM ALERT PLUS, GUARDIAN ALERT 911, and LifeSentry.

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.

LogicMark Inc has a Value Score of 88, which is considered to be undervalued.

When you look at LogicMark Inc’s price-to-sales ratio at 0.25 compared to the industry median at 2.99, this company has a lower price relative to revenue compared to its peers. This could make LogicMark Inc’s stock more attractive for value investors.

Now, let’s assess LogicMark Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 0.7, when compared to the industry median of 16.9, 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. LogicMark Inc’s shareholder yield is lower than its industry median ratio of (2.73%). 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. LogicMark Inc’s price-to-book ratio is lower than its industry median ratio of 2.50. This could make LogicMark Inc more attractive to investors looking for a new addition to their portfolio.

Veradigm Inc’s Value Grade

Value Grade:

Veradigm, Inc., formerly Allscripts Healthcare Solutions, Inc., delivers healthcare information technology (IT) solutions to help healthcare organizations achieve clinical, financial and operational results. The Company's solutions helps to connect people, places and data across an Open Connected Community of Health. It offers payer and life sciences solutions, which are mainly targeted at payers, life sciences companies and other key healthcare stakeholders. Veradigm also offers software applications for patient engagement and the sale of electronic health record (EHR) software to single-specialty and small and mid-sized physician practices, including related clinical, financial, administrative and operational solutions.

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.

Veradigm Inc has a Value Score of 72, which is considered to be undervalued.

Veradigm Inc’s price-earnings ratio is 14.0 compared to the industry median at 34.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Veradigm Inc more attractive for value investors.

Veradigm Inc’s price-to-book ratio is higher than its peers. This could make Veradigm Inc less attractive for value investors when compared to the industry median at 2.50.

You can read more about Veradigm 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.

Viewray Inc’s Value Grade

Value Grade:

ViewRay, Inc. is engaged in designing, manufacturing, and marketing the MRIdian MRI-Guided Radiation Therapy System. The MRIdian MR-Guided Radiation Therapy System integrates diagnostic MR imaging with radiation therapy delivery to enable on-table adaptive treatments with real-time tissue tracking and automatic beam gating. The MRIdian is comprised of three components, namely magnetic resonance imaging (MRI) system, radiation delivery system, and integrated treatment planning and delivery software. MRIdian employs MRI-based technology to provide real-time imaging that targets tumors from the surrounding soft tissue and other critical organs, both before and during radiation treatment delivery. MRIdian offers MR-guided imaging that provides tissue visualization compared to cone-beam computed tomography (CBCT), to enable contouring and reduced margins. The Company has installed approximately 56 MRIdian systems at hospitals, which are used to treat a variety of 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.

Viewray Inc has a Value Score of 94, which is considered to be undervalued.

Viewray Inc’s price-to-book ratio is higher than its peers. This could make Viewray Inc less attractive for value investors when compared to the industry median at 2.50.

You can read more about Viewray 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 Advanced Medical Equipment & Technology 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 Advanced Medical Equipment & Technology stocks as well as other industrys.

Choosing Which of the 3 Best Advanced Medical Equipment & Technology 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.

• LogicMark Inc stock has a Value Grade of A.
• Veradigm Inc stock has a Value Grade of B.
• Viewray Inc stock has a Value Grade of A.

Now that you have a bit more background about each of the 3 undervalued stocks in the Advanced Medical Equipment & Technology 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 Advanced Medical Equipment & Technology Stocks

Want to learn more about Advanced Medical Equipment & Technology 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.

• 3 Undervalued Advanced Medical Equipment & Technology Stocks for Wednesday, July 26
• What You Need to Know About Danaher Corporation's Q2 Earnings
• What You Need to Know About GE HealthCare Technologies Inc's Q2 Earnings
• 3 Undervalued Advanced Medical Equipment & Technology Stocks for Tuesday, July 25

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