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 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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5 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 5 undervalued stocks in the Biotechnology & Medical Research industry for Monday, September 18, 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.

Aptevo Therapeutics Inc’s Value Grade

Value Grade:

Aptevo Therapeutics Inc. is a clinical-stage biotechnology company. It is focused on developing novel immunotherapy candidates for the treatment of different forms of cancer. It has developed two versatile and enabling platform technologies for rational design of precision immune modulatory drugs. Its lead clinical candidates, APVO436 and ALG.APV-527, and preclinical candidates, APVO603 and APVO711, are developed using its ADAPTIR modular protein technology platform. Its preclinical candidate APVO442 is developed using its ADAPTIR-FLEX modular protein technology platform. APVO436 is a bispecific ADAPTIR that is designed to engage CD3 and CD123 to redirect T-cells to destroy leukemia cells expressing the target CD123 molecule on their surface. ALG.APV-527 is a novel investigational bispecific ADAPTIR candidate. APVO603 is a preclinical dual agonist bispecific ADAPTIR candidate designed to simultaneously target 4-1BB (CD137) and OX40 (CD134), both members of the TNF-receptor family.

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.

Aptevo Therapeutics Inc has a Value Score of 81, which is considered to be undervalued.

Now, let’s assess Aptevo Therapeutics Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 0.4, 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. Aptevo Therapeutics Inc’s shareholder yield is lower than its industry median ratio of (7.23%). 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. Aptevo Therapeutics Inc’s price-to-book ratio is lower than its industry median ratio of 1.52. This could make Aptevo Therapeutics Inc more attractive to investors looking for a new addition to their portfolio.

Aquabounty Technologies Inc’s Value Grade

Value Grade:

AquaBounty Technologies, Inc. is a land-based aquaculture company. The Company provides fresh Atlantic salmon to nearby markets by raising its fish in monitored land-based fish farms. The Company?s land-based Recirculating Aquaculture System (RAS) farms are designed to prevent disease and include multiple levels of fish containment to protect wild fish populations. RAS facilities provide water treatment technology, including the use of ozone, salt treatment and ultraviolet radiation to kill potential bacterial, fungal, or viral pathogens, which might enter the system. Its GE Atlantic salmon is based upon salmon genetics and grows to harvest size faster than conventional Atlantic salmon. The Company is vertically integrated and maintains its own broodstock hatchery, which produces the eggs that it grows-out to harvest size in its production farms. It operates two salmon farms: a 1,200 metric ton production grow-out farm in Indiana and a broodstock farm on Prince Edward Island, 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.

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

Aquabounty Technologies Inc’s price-to-book ratio is higher than its peers. This could make Aquabounty Technologies Inc less attractive for value investors when compared to the industry median at 1.52.

You can read more about Aquabounty Technologies 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.

Landos Biopharma Inc’s Value Grade

Value Grade:

Landos Biopharma, Inc. is a clinical-stage biopharmaceutical company that is focused on the discovery and development of oral therapeutics for patients with autoimmune diseases. It is engaged in the clinical development of compounds that target pathways at the interface of immunity and metabolism. Its lead candidate is NX-13, an oral, gut-selective NLRX1 agonist. It is developing NX-13 as a once-daily oral treatment for ulcerative colitis (UC) that targets the NOD-like receptor X1 (NLRX1), a mitochondria-associated receptor that has been associated with the modulation of inflammatory cytokines in UC. NX-13 is designed to target NLRX1 and induce anti-inflammatory effects in CD4+ T cells and other cells in the gastrointestinal tract. In addition to NX-13, it has discovered several preclinical product candidates, such as LABP-73, LABP-66 and LABP-69. LABP-73, an oral, small molecule NLRX1 pathway agonist in development for the treatment of asthma and chronic obstructive pulmonary disease.

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.

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

Landos Biopharma Inc’s price-to-book ratio is higher than its peers. This could make Landos Biopharma Inc less attractive for value investors when compared to the industry median at 1.52.

You can read more about Landos Biopharma 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.

Neubase Therapeutics Inc’s Value Grade

Value Grade:

NeuBase Therapeutics, Inc. is a preclinical-stage biotechnology company. It is developing a modular peptide-nucleic acid (PNA) antisense oligo (PATrOL) platform to address genetic diseases, with a single, cohesive approach. The Company’s programs are NT-0100 in HD, NT-0200 in myotonic dystrophy type 1 (DM1) and NT-0300 in KRAS-driven cancers. The NT-0100 program is a PATrOL-enabled therapeutic program being developed to target the mutant expansion in the HD DNA or RNA. The NT-0200 program is a PATrOL-enabled therapeutic program being developed to target the mutant expansion in the DM1 disease RNA. The NT-0300 program is a PATrOL-enabled therapeutic program being developed to target the mutated KRAS gene. It uses its platform to address diseases which have a genetic source, with an initial focus on gene silencing in DM1, Huntington’s disease (HD), and oncology and in gene editing applications. It also focused on identifying and evaluating multiple indications for potential development.

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.

Neubase Therapeutics Inc has a Value Score of 89, which is considered to be undervalued.

Neubase Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Neubase Therapeutics Inc less attractive for value investors when compared to the industry median at 1.52.

You can read more about Neubase 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.

Senti Biosciences Inc’s Value Grade

Value Grade:

Senti Biosciences, Inc. is a preclinical biotechnology company. The Company is developing cell and gene therapies engineered with its gene circuit platform technologies to fight challenging diseases. The Company's products include SENTI-202, SENTI-401 and SENTI-301A. It is developing its SENTI-202 product candidate as a Logic Gated (OR + NOT) off-the-shelf CAR-NK cell therapy designed to target and eliminate cancer cells while sparing the healthy bone marrow. SENTI-401 for the potential treatment of colorectal cancer (CRC) and Other Solid Tumors. SENTI-301A for the potential treatment of HCC and Other Solid Tumors. Its gene circuit platform technologies are designed to be applied in a modality-agnostic manner, with applicability to natural killer (NK) cells, T cells, tumor infiltrating lymphocytes (TILs), stem cells, including induced Pluripotent Stem Cells (iPSCs) Hematopoietic Stem Cells (HSCs), in vivo gene therapy, such as adeno associated virus, and messenger ribonucleic acid.

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.

Senti Biosciences Inc has a Value Score of 67, which is considered to be undervalued.

Senti Biosciences Inc’s price-to-book ratio is higher than its peers. This could make Senti Biosciences Inc less attractive for value investors when compared to the industry median at 1.52.

You can read more about Senti Biosciences 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 5 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.

• Aptevo Therapeutics Inc stock has a Value Grade of A.
• Aquabounty Technologies Inc stock has a Value Grade of B.
• Landos Biopharma Inc stock has a Value Grade of B.
• Neubase Therapeutics Inc stock has a Value Grade of A.
• Senti Biosciences 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 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.

• 5 Undervalued Biotechnology & Medical Research Stocks for Monday, September 18
• 3 Undervalued Biotechnology & Medical Research Stocks for Friday, September 15
• Why ACADIA Pharmaceuticals Inc’s (ACAD) Stock Is Down 4.37%
• Why Aclaris Therapeutics Inc’s (ACRS) Stock Is Down 5.63%

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