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 Wednesday, October 25, 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.

Acorda Therapeutics Inc’s Value Grade

Value Grade:

Acorda Therapeutics, Inc. is a biopharmaceutical company. The Company is focused on developing therapies that restore function and enhance the lives of people with neurological disorders. The Company uses its ARCUS pulmonary delivery system, which is a technology platform designed to deliver medication through inhalation that is used in the development of a variety of inhaled medicines. The Company?s commercial products include INBRIJA (levodopa inhalation powder) and AMPYRA (dalfampridine). Inbrija is an inhaled levodopa (L-dopa) for intermittent treatment of OFF episodes, also known as OFF periods in people with Parkinson?s disease treated with carbidopa/levodopa regimen. Inbrija utilizes its ARCUS platform for inhaled therapeutics. AMPYRA (dalfampridine) is an extended-release tablet formulation of dalfampridine as a treatment to enhance walking in patients with multiple sclerosis (MS). Ampyra is marketed as Fampyra outside the United States by Biogen International GmbH.

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.

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

When you look at Acorda Therapeutics Inc’s price-to-sales ratio at 0.10 compared to the industry median at 6.72, this company has a lower price relative to revenue compared to its peers. This could make Acorda Therapeutics Inc’s stock more attractive for value investors.

Now, let’s assess Acorda Therapeutics Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 14.1, when compared to the industry median of 0.9, 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. Acorda Therapeutics Inc’s shareholder yield is lower 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. Acorda Therapeutics Inc’s price-to-book ratio is lower than its industry median ratio of 1.18. This could make Acorda Therapeutics Inc more attractive to investors looking for a new addition to their portfolio.

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.

Neoleukin Therapeutics Inc’s Value Grade

Value Grade:

Neoleukin Therapeutics, Inc. is a biopharmaceutical company. The Company is engaged in providing immunotherapies for cancer, inflammation and autoimmunity using de novo protein design technology. The Company uses sophisticated computational methods to design proteins that demonstrate specific pharmaceutical properties that provide potentially superior therapeutic benefit over native proteins. Its primarily focused on key cytokine mimetics, which it refers to as Neoleukin de novo cytokine mimetics. The Company operates through the research and development of de novo protein therapeutics using sophisticated computational algorithms and methods to address unmet medical needs. The Company's primary areas of focus are on oncology, inflammation, and autoimmunity. Its de novo protein design process uses a set of advanced computational algorithms and methods to design functional de novo proteins.

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.

Neoleukin Therapeutics Inc has a Value Score of 94, which is considered to be undervalued.

Neoleukin Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Neoleukin Therapeutics Inc less attractive for value investors when compared to the industry median at 1.18.

You can read more about Neoleukin 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.

Pulmatrix Inc’s Value Grade

Value Grade:

Pulmatrix, Inc. is a clinical-stage biopharmaceutical company, which is focused on developing inhaled therapies to address serious pulmonary diseases and central nervous system (CNS) disorders using its patented inhaled small particles easily respirable and emitted (iSPERSE) technology. Its inhaled therapeutic products based on its dry powder delivery technology, namely iSPERSE enables delivery of small or large molecule drugs to the lungs by inhalation for local or systemic applications. iSPERSE powders are engineered to be small, dense particles with dispersibility and delivery to airways. Its iSPERSE?s lead development program, PUR1900 is its inhaled formulation of itraconazole, an anti-fungal drug commercially available as an oral drug, which it is developing to treat and prevent pulmonary fungal infections. Its pipeline also includes PUR3100 for the treatment of acute migraine, and PUR1800 for the treatment of acute exacerbations of chronic obstructive pulmonary disease (AECOPD).

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.

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

Pulmatrix Inc’s price-to-book ratio is higher than its peers. This could make Pulmatrix Inc less attractive for value investors when compared to the industry median at 1.18.

You can read more about Pulmatrix 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.

VBI Vaccines Inc’s Value Grade

Value Grade:

VBI Vaccines Inc. is a commercial stage biopharmaceutical company. Through its approach to virus-like particles (VLPs), including an enveloped VLP (eVLP) platform technology, The Company develops vaccine candidates that mimic the natural presentation of viruses, designed to elicit the innate power of the human immune system. The Company is focused on targeting and overcoming infectious diseases, including hepatitis B (HBV), COVID-19, and coronaviruses, and cytomegalovirus (CMV), as well as cancers, including glioblastoma (GBM). Its product pipeline includes an approved vaccine and multiple late- and early-stage investigational programs. PreHevbrio is its approved vaccine for hepatitis B. Its Prophylactic Candidates for corona virus disease include VBI-2901, VBI-2905, VBI-2902, and other. VBI-1501 is its Prophylactic Candidate for cytomegalovirus. VBI-2501 is its Prophylactic Candidate for Zika virus. VBI-2601 and VBI-1901 are the therapeutic candidates for HBV and GBM.

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.

VBI Vaccines Inc has a Value Score of 61, which is considered to be undervalued.

VBI Vaccines Inc’s price-to-book ratio is higher than its peers. This could make VBI Vaccines Inc less attractive for value investors when compared to the industry median at 1.18.

You can read more about VBI Vaccines 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.

• Acorda Therapeutics Inc stock has a Value Grade of B.
• International Stem Cell Corp stock has a Value Grade of A.
• Neoleukin Therapeutics Inc stock has a Value Grade of A.
• Pulmatrix Inc stock has a Value Grade of A.
• VBI Vaccines 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 Wednesday, October 25
• 5 Undervalued Biotechnology & Medical Research Stocks for Tuesday, October 24
• Why 4D Molecular Therapeutics Inc’s (FDMT) Stock Is Up 5.20%
• Why Ambrx Biopharma Inc’s (AMAM) Stock Is Up 15.12%

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