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 Thursday, October 19, 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.

Achilles Therapeutics PLC (ADR)’s Value Grade

Value Grade:

Achilles Therapeutics plc is a United Kingdom-based clinical-stage immuno-oncology biopharmaceutical company. The Company develops transformative precision T cell therapies to treat multiple types of solid tumors. Its lead product is a precision tumor-derived T cell therapy targeting clonal cancer neoantigens. Its pipeline includes Chiron: Advanced Non-Small Cell Lung Cancer, Thetis: Melanoma (Monotherapy), Thetis: Melanoma (PD-1 Combination), and other indications. It is focused on advancing cancer therapies through its work in the field of tumor evolution. Its platform enables to identify mutations formed early in the development of a cancer that give rise to antigens that are expressed by all of a patient's cancer cells but are absent from healthy tissue. It refers to this class of solid tumor targets as clonal neoantigens. To identify clonal neoantigens in a patient, it has developed a bioinformatic platform called PELEUS.

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.

Achilles Therapeutics PLC (ADR) has a Value Score of 91, which is considered to be undervalued.

Now, let’s assess Achilles Therapeutics PLC (ADR)’s EV/EBITDA ratio, also known as enterprise multiple. At 1.5, when compared to the industry median of 0.8, the company may be considered overvalued 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. Achilles Therapeutics PLC (ADR)’s shareholder yield is higher than its industry median ratio of (7.06%). 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. Achilles Therapeutics PLC (ADR)’s price-to-book ratio is lower than its industry median ratio of 1.25. This could make Achilles Therapeutics PLC (ADR) more attractive to investors looking for a new addition to their portfolio.

Amarin Corporation plc (ADR)’s Value Grade

Value Grade:

Amarin Corporation PLC is a pharmaceutical company. The Company is focused on the commercialization and development of therapeutics to improve cardiovascular (CV), health and reduce CV risk. The Company operates through the development and commercialization of VASCEPA. Its lead product, Vascepa (icosapent ethyl) capsule is used as an adjunct to diet to reduce triglyceride levels in adult patients with severe hypertriglyceridemia. This indication for Vascepa, known as the MARINE indication, is based primarily on the results from the MARINE study of Vascepa in this approved patient population. The Company sells Vascepa principally to wholesalers, as well as selected regional wholesalers and specialty pharmacy providers, or collectively, its distributors, which in turn resell Vascepa to retail pharmacies for resale to patients and healthcare providers.

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.

Amarin Corporation plc (ADR) has a Value Score of 69, which is considered to be undervalued.

Amarin Corporation plc (ADR)’s price-to-book ratio is higher than its peers. This could make Amarin Corporation plc (ADR) less attractive for value investors when compared to the industry median at 1.25.

You can read more about Amarin Corporation plc (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.

Bellerophon Therapeutics Inc’s Value Grade

Value Grade:

Bellerophon Therapeutics, Inc. is a clinical-stage therapeutics company. The Company is focused on developing products that address significant unmet medical needs in the treatment of cardiopulmonary diseases. The Company?s focus is to develop its nitric oxide therapy for patients with pulmonary hypertension (PH) using its delivery system, INOpulse. The Company?s INOpulse program is an extension of the technology used in hospitals to deliver continuous flow inhaled nitric oxide. INOpulse program is built on scientific and technical development for the therapeutic delivery of inhaled nitric oxide. It is also developing INOpulse for the treatment of patients with fibrotic interstitial lung disease (fILD), PH-Sarcoidosis, PH-chronic obstructive pulmonary disease (COPD), pulmonary arterial hypertension, and other pulmonary hypertension conditions. The Company?s subsidiaries include Bellerophon BCM LLC, Bellerophon Pulse Technologies LLC and Bellerophon Services, Inc.

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.

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

Bellerophon Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Bellerophon Therapeutics Inc less attractive for value investors when compared to the industry median at 1.25.

You can read more about Bellerophon 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.

International Stem Cell Corp’s Value Grade

Value Grade:

International Stem Cell Corporation is a clinical-stage biotechnology company that is focused on therapeutic and biomedical product development. The Company's products are based on human cell culture and a type of pluripotent stem cells and human parthenogenetic stem cells (hpSCs). The Company is primarily a research and development company, for the therapeutic market, which has focused on advancing potential clinical applications of hpSCs for the treatment of various diseases of the central nervous system and liver diseases. The Company's subsidiaries include Lifeline Cell Technology, LLC (LCT), which develops, manufactures and commercializes primary human cell research products for the biomedical market; Lifeline Skin Care, Inc. (LSC), which develops, manufactures and markets a category of anti-aging skin care products for anti-aging market, and Cyto Therapeutics Pty. Ltd. (Cyto Therapeutics) performs research and development (R&D;) for the therapeutic 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.

International Stem Cell Corp has a Value Score of 97, which is considered to be undervalued.

You can read more about International Stem Cell Corp’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.

LAVA Therapeutics NV’s Value Grade

Value Grade:

LAVA Therapeutics NV, formerly known as Lava Therapeutics BV, is a provider of biotechnology research and development services based in the Netherlands. The Company focuses of developing next generation Vdelta T cell engaging bispecific antibodies to fight cancer.

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.

LAVA Therapeutics NV has a Value Score of 77, which is considered to be undervalued.

LAVA Therapeutics NV’s price-to-book ratio is higher than its peers. This could make LAVA Therapeutics NV less attractive for value investors when compared to the industry median at 1.25.

You can read more about LAVA Therapeutics NV’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.

Maravai Lifesciences Holdings Inc’s Value Grade

Value Grade:

Maravai LifeSciences Holdings, Inc. is a life sciences company. The Company provides products that enable the development of drug therapies, diagnostics, and novel vaccines and to support research on human diseases. The Company?s segments include Nucleic Acid Production and Biologics Safety Testing. The Nucleic Acid Production segment focuses on the manufacturing and sale of modified nucleic acid products to support the needs of customers? research, therapeutic and vaccine programs. This segment also provides research products for labeling and detecting proteins in cells and tissue samples. The Biologics Safety Testing segment focuses on manufacturing and selling biologics safety and impurity tests and assay development services that are utilized by its customers in their biologic drug manufacturing activities. It provides products that support its customers? needs from discovery through commercialization of their vaccines, therapeutic agents and in vitro diagnostic products.

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.

Maravai Lifesciences Holdings Inc has a Value Score of 68, which is considered to be undervalued.

Maravai Lifesciences Holdings Inc’s price-earnings ratio is 8.4 compared to the industry median at 21.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Maravai Lifesciences Holdings Inc more attractive for value investors.

Maravai Lifesciences Holdings Inc’s price-to-book ratio is lower than its peers. This could make Maravai Lifesciences Holdings Inc more attractive for value investors when compared to the industry median at 1.25.

You can read more about Maravai Lifesciences Holdings 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.

Revelation Biosciences Inc’s Value Grade

Value Grade:

Revelation Biosciences, Inc. is a clinical-stage biopharmaceutical company engaged in the development of innate immune system therapeutics and diagnostics. Its therapeutic candidates are based on the active ingredient phosphorylated hexaacyl disaccharide (PHAD), a synthetic version of monophosphoryl lipid A (MPLA) that is known to stimulate Toll-like receptor 4 (TLR-4). Its product candidates include REVTx-300, which is being developed as a potential therapy for the prevention and treatment of acute organ injury and chronic organ disease; REVTx-100, which is being developed for the prevention and treatment of infections, including healthcare-associated bacterial infections resulting from surgery, severe burns, and antibiotic resistance; REVTx-200, which is being developed as a potential intranasal therapy that is administered with a traditional commercially available intramuscular (IM) vaccine, and REVTx-99b, which is being developed as a treatment for food allergies.

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.

Revelation Biosciences Inc has a Value Score of 70, which is considered to be undervalued.

Revelation Biosciences Inc’s price-to-book ratio is higher than its peers. This could make Revelation Biosciences Inc less attractive for value investors when compared to the industry median at 1.25.

You can read more about Revelation 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 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.

• Achilles Therapeutics PLC (ADR) stock has a Value Grade of A.
• Amarin Corporation plc (ADR) stock has a Value Grade of B.
• Bellerophon Therapeutics Inc stock has a Value Grade of A.
• International Stem Cell Corp stock has a Value Grade of A.
• LAVA Therapeutics NV stock has a Value Grade of B.
• Maravai Lifesciences Holdings Inc stock has a Value Grade of B.
• Revelation Biosciences 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 Thursday, October 19
• 3 Undervalued Biotechnology & Medical Research Stocks for Wednesday, October 18
• Why 4D Molecular Therapeutics Inc’s (FDMT) Stock Is Up 6.66%
• Why Aclaris Therapeutics Inc’s (ACRS) Stock Is Down 4.35%

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