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 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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5 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 5 undervalued stocks in the Advanced Medical Equipment & Technology industry for Tuesday, August 15, 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.

Acutus Medical Inc’s Value Grade

Value Grade:

Acutus Medical, Inc. is an arrhythmia management company focused on cardiac arrhythmias that are diagnosed and treated. It designs, manufactures and markets a range of tools for catheter-based ablation procedures to treat various arrhythmias. Its product portfolio includes access sheaths, transseptal crossing tools, diagnostic and mapping catheters, conventional and contact force ablation catheters, mapping and imaging consoles and accessories, as well as supporting algorithms and software programs. The Company's product is its AcQMap imaging and mapping system, which offers a paradigm-shifting approach to mapping the drivers and maintainers of arrhythmias. It designed AcQMap System to improve procedure efficiency and outcomes by rapidly identifying ablation targets and confirming both ablation success and procedure completion. Its AcQMap System consists of single-use AcQMap catheter, as well as its console, workstation and software algorithms. Its subsidiary is Acutus Medical NV.

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.

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

When you look at Acutus Medical Inc’s price-to-sales ratio at 1.03 compared to the industry median at 2.42, this company has a lower price relative to revenue compared to its peers. This could make Acutus Medical 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. Acutus Medical Inc’s shareholder yield is higher than its industry median ratio of (2.84%). 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. Acutus Medical Inc’s price-to-book ratio is lower than its industry median ratio of 2.25. This could make Acutus Medical Inc more attractive to investors looking for a new addition to their portfolio.

Butterfly Network Inc’s Value Grade

Value Grade:

Butterfly Network, Inc. is a digital health company. The Company has created a handheld, single probe whole-body ultrasound system using semiconductor technology, the Butterfly iQ+. Through its proprietary Ultrasound-on-Chip technology, is paving the way for earlier detection and remote management of health conditions around the world. Its Butterfly Blueprint provides a system-wide ultrasound platform with Compass software that integrates into a healthcare system?s clinical and administrative infrastructure to be able to deploy Butterfly iQ+. Its product portfolio includes a combination of hardware and software, including the Butterfly iQ and iQ+ probes, software subscriptions, and the Butterfly Blueprint platform. In addition, the Company also offers cloud-based software solutions to healthcare systems, teleguidance, in-app educational tutorials, and formal education programs through its Butterfly Academy software, as well as clinical support and services for large scale deployments.

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.

Butterfly Network Inc has a Value Score of 63, which is considered to be undervalued.

Butterfly Network Inc’s price-to-book ratio is higher than its peers. This could make Butterfly Network Inc less attractive for value investors when compared to the industry median at 2.25.

You can read more about Butterfly Network 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.

IRIDEX Corporation’s Value Grade

Value Grade:

IRIDEX Corporation is an ophthalmic medical technology company, which is focused on the development and commercialization of products and procedures used to treat sight-threatening eye conditions, including glaucoma and retinal diseases. The Company?s laser consoles products consist of Glaucoma, which includes Cyclo G6 laser and delivery devices used for the treatment of glaucoma; Medical Retina product line, which includes IQ 532 and IQ 577 laser systems, which are used for the treatment of diabetic macular edema and other retinal diseases, and its PASCAL Synthesis Photocoagulator for the treatment of retinal diseases; Surgical Retina, which includes OcuLight TX, OcuLight SL and OcuLight SLx laser photocoagulation systems. The Company?s laser probes products consist of Glaucoma, which include MicroPulse P3 Probe, G-Probe and G-Probe Illuminate, and Surgical Retina probes, which include EndoProbe family of products used in vitrectomy procedures.

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.

IRIDEX Corporation has a Value Score of 61, which is considered to be undervalued.

IRIDEX Corporation’s price-to-book ratio is higher than its peers. This could make IRIDEX Corporation less attractive for value investors when compared to the industry median at 2.25.

You can read more about IRIDEX Corporation’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.

Medigus Ltd - ADR’s Value Grade

Value Grade:

Medigus is a Israel-based medical device company specializing in developing minimally invasive endosurgical tools and imaging solutions across medical and industrial applications. The Company developed a range of micro video cameras underr micro ScoutCam portfolio of products and the Medigus Ultrasonic Surgical Endostapler, or MUSE system endoscopic device for the treatment of gastroesophageal reflux disease (GERD)

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.

Medigus Ltd - ADR has a Value Score of 77, which is considered to be undervalued.

Medigus Ltd - ADR’s price-to-book ratio is higher than its peers. This could make Medigus Ltd - ADR less attractive for value investors when compared to the industry median at 2.25.

You can read more about Medigus 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.

RA Medical Systems Inc’s Value Grade

Value Grade:

Ra Medical Systems, Inc. is a medical device company. The Company is focused on developing technology for electrophysiology (EP) procedures. The Company?s product includes Ventricular Onset System (VIVO), LockeT and Amigo Remote Catheter System. Its VIVO is a non-invasive imaging system that offers 3D cardiac mapping to help with localizing the sites of origin of idiopathic ventricular arrhythmias in patients with structurally normal hearts prior to EP procedures. Its VIVO utilizes non-invasive inputs to locate the origin of ventricular arrhythmias. VIVO uses standard clinical inputs, such as a CT or MRI and a 12 lead ECG, both of which are routinely gathered for EP procedures, allowing VIVO to seamlessly integrate into the workflow. A 3D photograph is obtained of the patient?s torso after the ECG leads are in place and all of these clinical inputs are combined to generate a 3D map of the patient?s heart with a location of the earliest onset of the ventricular arrhythmia.

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.

RA Medical Systems Inc has a Value Score of 75, which is considered to be undervalued.

RA Medical Systems Inc’s price-to-book ratio is higher than its peers. This could make RA Medical Systems Inc less attractive for value investors when compared to the industry median at 2.25.

You can read more about RA Medical 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.

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 5 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.

• Acutus Medical Inc stock has a Value Grade of B.
• Butterfly Network Inc stock has a Value Grade of B.
• IRIDEX Corporation stock has a Value Grade of B.
• Medigus Ltd - ADR stock has a Value Grade of B.
• RA Medical Systems Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 5 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.

• 5 Undervalued Advanced Medical Equipment & Technology Stocks for Tuesday, August 15
• 3 Undervalued Advanced Medical Equipment & Technology Stocks for Monday, August 14
• What You Need to Know About Computer Programs and Systems Inc's Q2 Earnings
• What You Need to Know About Illumina, Inc.'s Q2 Earnings

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