What are the top 20 Undervalued Stocks (selected over 5 market cap classes) in the Health Care Sector? I have used the analysis tools on the website stockcalc.com to generate the content of this blog post. Have a look down the Welcome page www.stockcalc.com/Welcome for some of the free lists and reports available.
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Undervalued Stocks – Health Care Sector
Today our focus is the Health Care sector and we are looking at companies that are undervalued based on our Weighted Average Valuation (WAV) calculation which we do for the 8000 stocks each night in the StockCalc database. The Health Care sector is comprised of companies in the following Industry groups: Biotechnology, Drug Manufacturers, Healthcare Plans, Providers & Services, Medical Devices, Instruments, Diagnostics, Research and Distribution. Companies in this Sector range in activities from research and discovery through to development and production of innovative drug and drug related technologies. They also include medical software, diagnostics, equipment, retail drug sales through to managed health products and services. The mature companies in this sector tend to have steady revenues and earnings through the economic cycles. The stocks are also held for their dividends.
We generate our Weighted Average Valuation (WAV) from 5 models and Analyst consensus. Overview of the models used: Discounted Cash Flow (DCF value) is a valuation technique where cash flow projections are discounted back to the present to calculate value per share. A Comparables model values the company on the basis of ratios from selected comparable companies. We actually do 3 types of comparables models. An Adjusted Book Value (ABV) is calculated by multiplying book value per share by its historical Price to Book ratio. If we have Analyst coverage we look at the consensus target price.
Today’s Data – Health Care
In the table below we can see the close price (Mar 15th 2021) and valuation for these companies along with the ratio of valuation to price as well as their market cap class and average trading volume.
| Symbol | Company Name | Close Price($) | Valuation ($) | Value/ Price | Class | Average Volume |
|---|---|---|---|---|---|---|
| GRFS-Q | Grifols | 16.05 | 25.46 | 1.59 | Large Cap | 1252042 |
| REGN-Q | Regeneron Pharmaceuticals | 483.94 | 670.01 | 1.38 | Large Cap | 725117 |
| VRTX-Q | Vertex Pharmaceuticals | 219.65 | 281.29 | 1.28 | Large Cap | 1539755 |
| FMS-N | Fresenius Medical Care | 36.32 | 45.43 | 1.25 | Large Cap | 514545 |
| GSK-N | GlaxoSmithKline | 35.88 | 44.13 | 1.23 | Large Cap | 6011590 |
| OPK-Q | OPKO Health | 4.72 | 6.11 | 1.29 | Mid Cap | 9264797 |
| CMD-N | Cantel Medical | 78.43 | 100.00 | 1.28 | Mid Cap | 755123 |
| GLPG-Q | Galapagos | 83.08 | 106.05 | 1.28 | Mid Cap | 142367 |
| SAGE-Q | Sage Therapeutics | 79.32 | 99.00 | 1.25 | Mid Cap | 400545 |
| EXEL-Q | Exelixis | 24.17 | 29.91 | 1.24 | Mid Cap | 2098945 |
| SUPN-Q | Supernus Pharmaceuticals | 26.80 | 54.25 | 2.02 | Small Cap | 282360 |
| CPRX-Q | Catalyst Pharmaceuticals | 3.94 | 7.27 | 1.84 | Small Cap | 1443936 |
| CHRS-Q | Coherus BioSciences | 15.86 | 27.37 | 1.73 | Small Cap | 823515 |
| CO-N | Global Cord Blood | 4.58 | 6.66 | 1.45 | Small Cap | 59174 |
| GUD-T | Knight Therapeutics | 5.20 | 7.19 | 1.38 | Small Cap | 508236 |
| HAPP-Q | Happiness Biotech Gr | 2.08 | 3.97 | 1.91 | Micro Cap | 316488 |
| DR-T | Medical Facilities | 6.76 | 9.30 | 1.38 | Micro Cap | 77223 |
| VYGR-Q | Voyager Therapeutics | 5.80 | 6.77 | 1.17 | Micro Cap | 422267 |
| LABS-T | MediPharm Labs | 0.53 | 0.61 | 1.16 | Micro Cap | 4424442 |
| CRHM-A | CRH Medical | 3.89 | 4.45 | 1.14 | Micro Cap | 375956 |
| DN-T | Delta 9 Cannabis | 0.52 | 0.57 | 1.10 | Nano Cap | 245179 |
N-NYSE, Q-Nasdaq, A-American, T-Toronto, X-Toronto Venture
Lets look at a few companies…
Lets look at a couple of the companies on this list to get a better understanding of them.
Regeneron Pharmaceuticals
http://www.regeneron.com
Regeneron Pharmaceuticals Inc is an integrated biopharmaceutical company. It discovers, invents, develops, manufactures, and commercializes medicines for the treatment of serious medical conditions.
Cantel Medical
http://www.cantelmedical.com
Cantel Medical Corp is dedicated in delivering infection prevention products and services for patients, caregivers, and other healthcare providers which improve outcomes, enhance safety and help save lives.
Medical Facilities
https://www.medicalfacilitiescorp.ca
Medical Facilities Corp is engaged in controlling interests, through its subsidiaries, in specialty hospitals and an ambulatory surgery center. The specialty surgical hospitals perform scheduled surgical, imaging and diagnostic procedures.
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