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, October 31, 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.

Celularity Inc’s Value Grade

Value Grade:

Celularity Inc. is a clinical-stage biotechnology company. The Company is engaged in developing off-the-shelf placental-derived allogeneic cell therapies for the treatment of cancer and immune and infectious diseases. It operates through three business segments: Cell Therapy, Degenerative Disease, and BioBanking. Its therapy product candidates include T cells engineered with a chimeric antigen receptor (CAR), natural killer, cells, mesenchymal-like adherent stromal cells (MLASCs), and exosomes. These therapeutic candidates target indications across cancer, infectious and degenerative diseases. Its cell therapeutic programs include CYCART-19, CYCART-201, CYNK-001, CYNK-301, CYNK-302, APPL-001, and pEXO-001. CYCART-19 is a placental-derived CAR-T cell therapy, in development for the treatment of B-cell malignancies, initially targeting the cluster of differentiation 19. pExo-001 is developed for the treatment of osteoarthritis. APPL-001 is developed for the treatment of Crohn?s 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.

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

When you look at Celularity Inc’s price-to-sales ratio at 2.45 compared to the industry median at 6.58, this company has a lower price relative to revenue compared to its peers. This could make Celularity Inc’s stock more attractive for value investors.

Now, let’s assess Celularity Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 2.2, 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. Celularity Inc’s shareholder yield is lower than its industry median ratio of (7.04%). 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. Celularity Inc’s price-to-book ratio is lower than its industry median ratio of 1.18. This could make Celularity Inc more attractive to investors looking for a new addition to their portfolio.

Finch Therapeutics Group Inc’s Value Grade

Value Grade:

Finch Therapeutics Group, Inc. is a microbiome technology company with a portfolio of intellectual property and microbiome assets. It is focused on realizing the value of its intellectual property estate and other assets, while supporting the advancement of its microbiome technology through partnerships and collaborations. It has an intellectual property estate, including more than 70 issued U.S. and foreign patents with relevance for both donor-derived and donor-independent microbiome therapeutics in a range of potential indications. The Company?s assets include CP101, an orally administered microbiome candidate designed for the prevention of recurrent C. difficile infection (CDI), with positive clinical data from a Phase II randomized, placebo-controlled trial and a Phase II open-label trial, and pre-clinical assets that are designed to target ulcerative colitis, Crohn?s disease, and autism spectrum disorder. Additionally, it has also developed a biorepository of strains and samples.

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.

Finch Therapeutics Group Inc has a Value Score of 65, which is considered to be undervalued.

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

You can read more about Finch Therapeutics Group 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.

Inhibitor Therapeutics Inc’s Value Grade

Value Grade:

Inhibitor Therapeutics, Inc. is a pharmaceutical development company. The Company is focused on developing and commercializing therapeutics for patients with certain cancers and certain non-cancerous proliferation disorders. It also explores acquiring or licensing other pre-clinical and clinical stage therapeutics addressing unmet needs and orphan indications for the treatment of cancer and other diseases. The Company?s primary focus is on the development of therapies initially for BCCNS, prostate and lung cancers in the United States utilizing Itraconazole, in a patent-protected formulation. It has conducted a Phase IIb study of SUBA-Itraconazole for the treatment of Basal Cell Carcinoma Nevus Syndrome, and Mayne Pharma assumed control of the clinical and regulatory development of this formulation for this indication.

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.

Inhibitor Therapeutics Inc has a Value Score of 99, which is considered to be undervalued.

Inhibitor Therapeutics Inc’s price-earnings ratio is 1.8 compared to the industry median at 19.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Inhibitor Therapeutics Inc more attractive for value investors.

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

You can read more about Inhibitor 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 96, 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.

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 1.18.

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.

Pieris Pharmaceuticals Inc’s Value Grade

Value Grade:

Pieris Pharmaceuticals, Inc. is a clinical-stage biotechnology company that discovers and develops Anticalin-based drugs to target validated disease pathways. The Company?s clinical pipeline includes an inhaled IL-4Ra antagonist Anticalin protein to treat asthma, an immuno-oncology (IO), bispecific targeting HER2 and 4-1BB, and an IO bispecific targeting PD-L1 and 4-1BB. Its lead respiratory Anticalin based drug candidate, elarekibep, antagonizes IL-4Ra, thereby inhibiting IL-4 and IL-13, two cytokines, which are small proteins mediating signaling between cells within the human body, known to be key mediators in the inflammatory cascade that drive the pathogenesis of asthma and other inflammatory diseases. Its IO portfolio also includes additional drug candidates beyond PRS-344/S095012 that are multi-specific Anticalin-based fusion proteins designed to engage immunomodulatory targets, comprising a variety of multifunctional biotherapeutics.

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.

Pieris Pharmaceuticals Inc has a Value Score of 79, which is considered to be undervalued.

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

You can read more about Pieris Pharmaceuticals 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.

Protara Therapeutics Inc’s Value Grade

Value Grade:

Protara Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on identifying therapies for the treatment of cancer and rare diseases. The Company's pipeline includes TARA-002 and IV Choline Chloride. The Company's lead product pipeline is TARA 002 for the treatment of non-muscle invasive bladder cancer (NMIBC) and Lymphatic Malformations (LMs). TARA 002 is a cellular therapy based on OK-432, also known as Picibanil, which is derived from a genetically distinct strain of Streptococcus Pyogenes. The Company?s IV choline chloride is an investigational, intravenous (IV) phospholipid substrate replacement therapy, which is in development for patients receiving parenteral nutrition (PN) who have intestinal failure-associated liver disease (IFALD).

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.

Protara Therapeutics Inc has a Value Score of 96, which is considered to be undervalued.

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

You can read more about Protara 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.

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.

• Celularity Inc stock has a Value Grade of B.
• Finch Therapeutics Group Inc stock has a Value Grade of B.
• Inhibitor Therapeutics Inc stock has a Value Grade of A.
• International Stem Cell Corp stock has a Value Grade of A.
• Neubase Therapeutics Inc stock has a Value Grade of A.
• Pieris Pharmaceuticals Inc stock has a Value Grade of B.
• Protara Therapeutics Inc stock has a Value Grade of A.

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, October 31
• 5 Undervalued Biotechnology & Medical Research Stocks for Monday, October 30
• Why Arcus Biosciences Inc’s (RCUS) Stock Is Up 4.33%
• Why Arvinas Inc’s (ARVN) Stock Is Up 6.27%

AAII Disclaimer

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