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.

Click the button below to learn more about A+ Investor and subscribe today.

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 Friday, September 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.

Computer Programs and Systems Inc’s Value Grade

Value Grade:

Computer Programs and Systems, Inc. is a provider of healthcare solutions and services for community hospitals, their clinics and other healthcare systems. The Company?s segments include RCM, EHR, and Patient Engagement. The RCM segment provides business management, consulting, and managed information technology services along with its complete RCM solution for all care settings, regardless of their primary healthcare information solutions provider. The EHR segment provides acute and post-acute care EHR solutions and related services for community hospitals, their physician clinics, and skilled nursing and assisted living facilities. The Patient Engagement segment offers patient engagement and empowerment technology solutions through Get Real Health to improve patient outcomes and engagement strategies with care providers. Its Subsidiaries include Evident, LLC, American HealthTech, Inc., TruBridge, LLC, iNetXperts, Corp., TruCode LLC, and Healthcare Resource Group, Inc. and others.

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.

Computer Programs and Systems Inc has a Value Score of 61, which is considered to be undervalued.

When you look at Computer Programs and Systems Inc’s price-to-sales ratio at 0.67 compared to the industry median at 2.18, this company has a lower price relative to revenue compared to its peers. This could make Computer Programs and Systems Inc’s stock more attractive for value investors.

Computer Programs and Systems Inc’s price-earnings ratio is 47.07 compared to the industry median at 30.69. This means it has a higher share price relative to earnings compared to its peers. This could make Computer Programs and Systems Inc less attractive for value investors.

Now, let’s assess Computer Programs and Systems Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 9.9, when compared to the industry median of 15.4, 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. Computer Programs and Systems Inc’s shareholder yield is higher than its industry median ratio of (2.93%). 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. Computer Programs and Systems Inc’s price-to-book ratio is lower than its industry median ratio of 2.10. This could make Computer Programs and Systems Inc more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Computer Programs and Systems Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Computer Programs and Systems Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 36.87. This could make Computer Programs and Systems Inc more attractive because the lower P/FCF ratio indicates that Computer Programs and Systems 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.

HTG Molecular Diagnostics Inc’s Value Grade

Value Grade:

HTG Molecular Diagnostics, Inc. is a life science company. The Company is focused on advancing precision medicine and drug discovery through its transcriptome-wide profiling and advanced drug discovery platform technologies. The Company is engaged in the sales of its HTG EdgeSeq system and integrated next-generation sequencing-based (NGS-based) HTG EdgeSeq research use only (RUO) assays and from sample processing services. Its HTG EdgeSeq profiling technology measures ribonucleic acid (RNA) using deoxyribonucleic acid (DNA) nuclease protection probes (DNA protection probes). Its profiling product and service solutions enable targeted RNA profiling using a small amount of biological sample, in liquid or solid forms. Its menu of HTG EdgeSeq assays includes the HTG Transcriptome Panel (HTP), which is designed to measure approximately 20,000 mRNA targets using its HTG EdgeSeq technology, is automated on its HTG EdgeSeq system.

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.

HTG Molecular Diagnostics Inc has a Value Score of 61, which is considered to be undervalued.

HTG Molecular Diagnostics Inc’s price-to-book ratio is higher than its peers. This could make HTG Molecular Diagnostics Inc less attractive for value investors when compared to the industry median at 2.10.

You can read more about HTG Molecular Diagnostics 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.

Neuronetics Inc’s Value Grade

Value Grade:

Neuronetics, Inc. is a commercial-stage medical technology company. The Company is focused on designing, developing and marketing products for patients who suffer from neurohealth disorders. Its commercial product, the NeuroStar Advanced Therapy System, is a non-invasive and non-systemic office-based treatment that uses transcranial magnetic stimulation (TMS) to create a pulsed, MRI-strength magnetic field that induces electrical currents designed to stimulate specific areas of the brain associated with mood. The NeuroStar Advanced Therapy System is used to treat adult patients with major depressive disorder (MDD). The Company intends to continue to pursue development of its NeuroStar Advanced Therapy System for additional indications. The Company sells its NeuroStar Advanced Therapy System and recurring treatment sessions in the United States. Its primary focus is on selling to psychiatrists, with primary care physicians and pain management specialists.

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.

Neuronetics Inc has a Value Score of 62, which is considered to be undervalued.

Neuronetics Inc’s price-to-book ratio is higher than its peers. This could make Neuronetics Inc less attractive for value investors when compared to the industry median at 2.10.

You can read more about Neuronetics 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.

• Computer Programs and Systems Inc stock has a Value Grade of B.
• HTG Molecular Diagnostics Inc stock has a Value Grade of B.
• Neuronetics Inc stock has a Value Grade of B.

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 Friday, September 15
• 3 Undervalued Advanced Medical Equipment & Technology Stocks for Thursday, September 14
• Why Bruker Corporation’s (BRKR) Stock Is Up 4.64%
• Why Edap Tms SA (ADR)’s (EDAP) Stock Is Up 4.32%

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.