Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 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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7 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 7 undervalued stocks in the Biotechnology & Medical Research industry for Tuesday, August 22, 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.

Applied Molecular Transport Inc.’s Value Grade

Value Grade:

Applied Molecular Transport Inc. is a clinical-stage biopharmaceutical company. The Company is leveraging its technology platform to design and develop a pipeline of oral biologic product candidates to treat autoimmune, inflammatory, metabolic, and other diseases. The Company?s pipeline includes AMT-101, and AMT-126. AMT-101 is a gastrointestinal-selective oral fusion of interleukin 10 (IL-10) and its proprietary carrier molecule that has been designed for active transport across the intestinal epithelium (IE) barrier into local gastrointestinal (GI) tissue. AMT-126 is a GI-selective oral fusion of interleukin 22 (IL-22) and its proprietary carrier molecule presently in development for diseases related to IE barrier function defects. Its technology platform enables it to design and develop various oral biologic therapeutic modalities, such as peptides, proteins, full-length antibodies, antibody fragments, and ribonucleic acid (RNA) therapeutics with development-stage drugs.

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.

Applied Molecular Transport Inc. has a Value Score of 91, which is considered to be undervalued.

Now, let’s assess Applied Molecular Transport Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 0.2, when compared to the industry median of 0.8, 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. Applied Molecular Transport Inc.’s shareholder yield is higher than its industry median ratio of (7.19%). 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. Applied Molecular Transport Inc.’s price-to-book ratio is lower than its industry median ratio of 1.60. This could make Applied Molecular Transport Inc. more attractive to investors looking for a new addition to their portfolio.

Fresh Tracks Therapeutics Inc’s Value Grade

Value Grade:

Fresh Tracks Therapeutics, Inc. is a clinical-stage pharmaceutical company. The Company is engaged in transforming patient lives through the development of differentiated prescription therapeutics. Its pipeline is focused on providing existing treatment paradigms and features several new chemical entities that inhibit novel targets with potential for autoimmune, inflammatory, and other debilitating diseases. The Company?s strategy is exploring therapies by identifying, pursuing, and developing therapeutics that can help people struggling with autoimmune, inflammatory, and other debilitating diseases. Its pipeline includes FRTX-02, FRTX-10, Next-Generation Kinase Inhibitors and FRTX-03. FRTX-02 is a potential Oral DYRK1A Inhibitor for the treatment of autoimmune and inflammatory diseases. Its FRTX-10 is a covalent Stimulator of Interferon Genes (STING) inhibitor candidate for the potential treatment of autoimmune, inflammatory, and rare genetic diseases.

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.

Fresh Tracks Therapeutics Inc has a Value Score of 68, which is considered to be undervalued.

Fresh Tracks Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Fresh Tracks Therapeutics Inc less attractive for value investors when compared to the industry median at 1.60.

You can read more about Fresh Tracks 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 64, 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 1.60.

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.

Janone Inc’s Value Grade

Value Grade:

JanOne Inc. is a clinical-stage pharmaceutical company. The Company is focused on identifying, acquiring, licensing, developing, partnering, and commercializing non-opioid and non-addictive therapies to address the large unmet medical need for the treatment of pain and addiction. Its drug candidate, JAN101, is an oral pharmaceutical composition of sodium nitrite that targets poor blood flow to the extremities, such as those with vascular complications of diabetes or Peripheral Artery Disease (PAD) and treats pain. It operates in two segments: Biotechnology and Technology. Its biotechnology segment is focused on finding treatments for conditions that cause severe pain and to market drugs with non-addictive pain-relieving properties. Its recycling segment is an appliance recycling program, which offers recycling, replacement and additional services for utility energy efficiency programs and have established 20 Regional Processing Centers (RPCs) throughout the United States and Canada.

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.

Janone Inc has a Value Score of 92, which is considered to be undervalued.

Janone Inc’s price-earnings ratio is 5.0 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 Janone Inc more attractive for value investors.

Janone Inc’s price-to-book ratio is higher than its peers. This could make Janone Inc less attractive for value investors when compared to the industry median at 1.60.

You can read more about Janone 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.

Oncotelic Therapeutics Inc’s Value Grade

Value Grade:

Oncotelic Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on developing drugs for the treatment of orphan oncology indications, developing antisense and small molecule injectable drugs for the treatment of cancer. The Company?s pipeline includes OT-101, CA4P and Oxi4503. OT-101 is antisense against TGF-2 for the treatment of solid tumors with focus on brain cancer in adults and diffuse intrinsic pontine glioma (DIPG) in children. OT-101 is antisense against TGF-2 for the treatment of various viruses, including the SARS and the COVID-19, on its own and in conjunction with other compounds. CA4P is a vascular disrupting agent (VDA) in combination with Ipilimumab for the treatment of solid tumors with focus on melanoma in adult and pediatric melanoma. Oxi4503 is VDA for the treatment of liquid tumors with a focus on childhood leukemia.

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.

Oncotelic Therapeutics Inc has a Value Score of 77, which is considered to be undervalued.

Oncotelic Therapeutics Inc’s price-earnings ratio is 1.3 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 Oncotelic Therapeutics Inc more attractive for value investors.

Oncotelic Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Oncotelic Therapeutics Inc less attractive for value investors when compared to the industry median at 1.60.

You can read more about Oncotelic 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.

Regulus Therapeutics Inc’s Value Grade

Value Grade:

Regulus Therapeutics Inc. is a clinical-stage biopharmaceutical company focused on discovering and developing drugs targeting microRNAs to treat diseases. The Company is leveraging its oligonucleotide drug discovery and development to develop a pipeline complemented by a rich intellectual property estate in the microRNA field. The Company?s lead product candidate includes RGLS8429. The Company is developing single-stranded oligonucleotides, which are chemically synthesized chains of nucleotides that are complementary to (thereby pairing with) the target microRNA. RGLS8429 is an anti-miR next-generation oligonucleotide targeting miR-17 for the treatment of autosomal dominant polycystic kidney disease (ADPKD). RGLS8429 maintains beneficial attributes, such as preferential kidney exposure and similar PK profile, miR-17 inhibition potency and duration of action in the kidney, equal potency in vitro and in vivo efficacy studies.

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.

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

Regulus Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Regulus Therapeutics Inc less attractive for value investors when compared to the industry median at 1.60.

You can read more about Regulus 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.

Third Harmonic Bio Inc’s Value Grade

Value Grade:

Third Harmonic Bio, Inc. is a biopharmaceutical company. The Company is engaged in the development of medicine for the treatment of inflammatory diseases, including dermal, respiratory, and gastrointestinal diseases. It is focused on developing oral small-molecule inhibitors of KIT, a cell surface receptor that serves as the master regulator of mast cell function and survival. Mast cells are a part of the immune system, and dysfunctional mast cell activity has been implicated in the pathophysiology of a broad range of inflammatory disorders including urticaria, asthma and gastrointestinal disorders, among others. The Company?s clinical studies demonstrate that KIT inhibition is used for the treatment of a range of mast-cell-mediated inflammatory diseases, and that a titratable, oral, intracellular small molecule inhibitor may provide the optimal therapeutic profile against this target.

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.

Third Harmonic Bio Inc has a Value Score of 77, which is considered to be undervalued.

Third Harmonic Bio Inc’s price-to-book ratio is higher than its peers. This could make Third Harmonic Bio Inc less attractive for value investors when compared to the industry median at 1.60.

You can read more about Third Harmonic Bio 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 7 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.

• Applied Molecular Transport Inc. stock has a Value Grade of A.
• Fresh Tracks Therapeutics Inc stock has a Value Grade of B.
• Genetron Holdings Ltd - ADR stock has a Value Grade of B.
• Janone Inc stock has a Value Grade of A.
• Oncotelic Therapeutics Inc stock has a Value Grade of B.
• Regulus Therapeutics Inc stock has a Value Grade of B.
• Third Harmonic Bio Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 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.

• 7 Undervalued Biotechnology & Medical Research Stocks for Tuesday, August 22
• Which Is a Better Investment, Immunocore Holdings PLC - ADR or Qiagen NV Stock?
• 3 Undervalued Biotechnology & Medical Research Stocks for Monday, August 21
• What You Need to Know About Immatics NV's Q2 Earnings

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