Healthcare Sector: Value Investing Analysis

About the Healthcare Sector

This sector includes biotechnology, pharmaceuticals, research services, home healthcare, hospitals, long-term-care facilities, and medical equipment and supplies. Also include pharmaceutical retailers and companies which provide health information services. Companies in this sector include AstraZeneca, Pfizer, and Roche Holding, Walgreens Boots Alliance, and Cerner Corp.

The Healthcare sector groups related businesses that share similar economic characteristics, market dynamics, and competitive forces. By analyzing stocks within this sector, you can compare companies on a more level playing field—making it easier to identify which businesses offer the best value for your investment dollars.

Understanding sector performance helps you evaluate whether individual stocks are cheap or expensive relative to their peers. A P/E ratio that looks high in one sector might be a bargain in another. This context is essential for value investors seeking to calculate realistic expected returns.

Healthcare Stocks: Value Analysis

Below are the stocks we track in the Healthcare sector, with key value investing metrics. If you have special knowledge about this sector, you have an advantage—use these metrics to find stocks that may be trading below their intrinsic value.

Discounted stocks in the index
Company Current Price Current Price Discount
10 years
Calithera Biosciences
(CALA)
$0.00 none
Genetic Technologies Limited
(GENE)
$0.00 none
Edge Therapeutics
(EDGE)
$51.65 none
Ironwood Pharmaceuticals
(IRWD)
$4.32 none
Cerus Corporation
(CERS)
$2.35 none
OrganiGram Holdings
(OGI)
$0.99 none
Syros Pharmaceuticals
(SYRS)
$0.00 none
Bayer Aktiengesellschaft
(BAYRY)
$14.45 none
Trinity Biotech plc
(TRIB)
$12.43 none
Xencor
(XNCR)
$20.81 none
BG Medicine
(BGMD)
$0.00 none
BioLife Solutions
(BLFS)
$34.66 none
InspireMD
(NSPR)
$0.74 none
Novo Nordisk A/S
(NVO)
$47.26 none
Tilray
(TLRY)
$4.57 none
Anavex Life Sciences Corp.
(AVXL)
$3.34 none
Rubius Therapeutics
(RUBY)
$0.00 none
Editas Medicine
(EDIT)
$2.88 none
Inovio Pharmaceuticals
(INO)
$0.67 none
Ocuphire Pharma
(OCUP)
$0.00 none
Pulse Biosciences
(PLSE)
$42.41 none
Inspire Medical Systems
(INSP)
$60.16 none
Alkermes plc
(ALKS)
$49.17 none
Globus Medical
(GMED)
$82.35 none
MiMedx Group
(MDXG)
$4.34 none
Biogen
(BIIB)
$207.94 none
Charles River Laboratories International
(CRL)
$267.49 none
Ocular Therapeutix
(OCUL)
$9.19 none
Sorrento Therapeutics
(SRNE)
$0.00 none
Baxter International
(BAX)
$27.55 1.5%
Utah Medical Products
(UTMD)
$70.83 none
Teva Pharmaceutical Industries Limited
(TEVA)
$35.36 none
Flexion Therapeutics
(FLXN)
$24.91 none
Novartis AG
(NVS)
$154.21 none
Cadence Pharmaceuticals
(CADX)
$0.00 none
Integer Holdings Corporation
(ITGR)
$125.27 none
Veru
(VERU)
$2.31 none

(NUS )
$5.19 86.2%
Axsome Therapeutics
(AXSM)
$212.74 none

(ONTY)
$0.00 none
Rocky Mountain Dental Services Holdings, LLC
(BDMS)
$0.00 70%
EDAP TMS S.A.
(EDAP)
$4.32 none
Deciphera Pharmaceuticals
(DCPH)
$0.00 none
Adamis Pharmaceuticals Corporation
(ADMP)
$0.00 none

(SNTS)
$0.00 none

(BMTI)
$0.00 none
West Pharmaceutical Services
(WST)
$348.60 none
Marinus Pharmaceuticals
(MRNS)
$0.00 none

(BLTI)
$0.00 none
Heron Therapeutics
(HRTX)
$0.49 none
ICU Medical
(ICUI)
$184.56 none
Aethlon Medical
(AEMD)
$3.15 none
KalVista Pharmaceuticals
(KALV)
$27.00 none
LifeVantage Corporation
(LFVN)
$6.76 none
3M Company
(MMM)
$182.90 none
Lantheus Holdings
(LNTH)
$100.95 none
HCA Healthcare
(HCA)
$413.36 none
DBV Technologies S.A.
(DBVT)
$13.48 none
Rocket Pharmaceuticals
(RCKT)
$3.61 none
Viatris
(VTRS)
$16.43 none
DexCom
(DXCM)
$84.75 none
Alkermes plc
( ALKS)
$49.17 none

(ALTH)
$0.00 none
Perrigo Company plc
(PRGO)
$12.84 none
Atossa Therapeutics
(ATOS)
$2.36 none
TherapeuticsMD
(TXMD)
$2.07 none
Ionis Pharmaceuticals
(IONS)
$56.56 none
Catalyst Pharmaceuticals
(CPRX)
$31.49 none
Ultragenyx Pharmaceutical
(RARE)
$25.91 none
Iovance Biotherapeutics
(IOVA)
$6.34 none
Arrowhead Pharmaceuticals
(ARWR)
$87.65 none
Jaguar Health
(JAGX)
$0.95 none
Amarin Corporation plc
(AMRN)
$14.36 none
Mannatech, Incorporated
(MTEX)
$4.79 none
Corbus Pharmaceuticals Holdings
(CRBP)
$10.17 none
Krystal Biotech
(KRYS)
$326.45 none
Teladoc Health
(TDOC)
$7.13 none
STERIS plc
(STE)
$237.47 none
Boston Scientific Corporation
(BSX)
$49.31 none
Smith & Nephew plc
(SNN)
$30.11 none
Alcon
(ALC)
$71.81 none
Savara
(SVRA)
$5.83 none
Avinger
(AVGR)
$0.00 none
Tactile Systems Technology
(TCMD)
$29.50 none
American Shared Hospital Services
(AMS)
$1.49 45.0%

(NBS)
$0.00 none
Imprimis Pharmaceuticals
(IMMY)
$0.00 none
Aurinia Pharmaceuticals
(AUPH)
$15.85 none
AdvisorShares Vice ETF
(ACT)
$48.96 none
Johnson & Johnson
(JNJ)
$259.24 none
Accuray Incorporated
(ARAY)
$0.28 none
Intellia Therapeutics
(NTLA)
$11.94 none
Zimmer Biomet Holdings
(ZBH)
$96.55 none
Amylin Pharmaceuticals
(AMLN)
$0.00 none
Abeona Therapeutics
(ABEO)
$7.24 none

(EGRX )
$0.25 none
BioLineRx Ltd.
(BLRX)
$2.71 none
SIGA Technologies
(SIGA)
$3.05 none
Theravance Biopharma
(TBPH)
$16.93 none
China Pharma Holdings
(CPHI)
$1.13 none
ImmuCell Corporation
(ICCC)
$11.00 none
Supernus Pharmaceuticals
(SUPN)
$47.64 none
Rennova Health
(RNVA)
$0.00 none
Bristol-Myers Squibb Company
(BMY)
$64.72 none
Fresenius Medical Care AG & Co. KGaA
(FMS)
$24.27 none
Universal Health Services
(UHS)
$173.54 none
Global X Genomics & Biotechnology ETF
(GNOM)
$58.17 none
Nevro Corp.
(NVRO)
$0.00 none
NeoGenomics
(NEO)
$16.57 none
Cara Therapeutics
(CARA)
$0.00 none
Selecta Biosciences
(SELB)
$0.00 none
Medpace Holdings
(MEDP)
$590.67 none
Surgery Partners
(SGRY)
$15.53 none
UFP Technologies
(UFPT)
$314.01 none
Agios Pharmaceuticals
(AGIO)
$30.02 none
Phibro Animal Health Corporation
(PAHC)
$36.33 none
Cumberland Pharmaceuticals
(CPIX)
$6.68 none
Tenet Healthcare Corporation
(THC)
$257.62 none

(ABBV )
$250.94 none
Amgen
(AMGN)
$387.64 none
Quest Diagnostics Incorporated
(DGX)
$235.22 none
Escalon Medical Corp.
(ESMC)
$0.18 none
Allogene Therapeutics
(ALLO)
$1.88 none
REGENXBIO
(RGNX)
$9.69 none
Atara Biotherapeutics
(ATRA)
$8.38 none
Butterfly Network
(BFLY)
$7.11 none
Lineage Cell Therapeutics
(BTX)
$8.52 none
Celldex Therapeutics
(CLDX)
$41.06 none
Edwards Lifesciences Corporation
(EW)
$85.76 none
DENTSPLY SIRONA
(XRAY)
$14.20 54.7%
Intuitive Surgical
(ISRG)
$353.10 none
McKesson Corporation
(MCK)
$888.56 none
Alnylam Pharmaceuticals
(ALNY)
$286.62 none
Alphatec Holdings
(ATEC)
$10.15 none
Alimera Sciences
(ALIM)
$0.00 none
Pfizer
(PFE)
$25.15 4.9%
BioTelemetry
(BEAT)
$0.49 none
Acura Pharmaceuticals
(ACUR)
$0.00 none
Abbott Laboratories
(ABT)
$108.00 none
Patterson Companies
(PDCO)
$0.00 none
Anthera Pharmaceuticals
(ANTH)
$0.00 none
Atrion Corporation
(ATRI)
$0.00 none
Ampio Pharmaceuticals
(AMPE)
$0.18 none
DaVita
(DVA)
$240.96 none
Acorda Therapeutics
(ACOR)
$0.00 none
Affymax
(AFFY)
$0.00 none

How to Invest in Healthcare Stocks

Sector-Specific Considerations

When evaluating Healthcare companies, consider these key factors:

  • Sector fundamentals: Is this sector growing, mature, or declining? Growth prospects affect reasonable earnings forecasts.
  • Economic sensitivity: How does this sector perform in different economic conditions? Understanding cyclicality helps you time purchases.
  • Competitive dynamics: Are barriers to entry high or low? Strong moats protect profits and justify premium valuations.
  • Regulatory environment: Does government policy significantly impact this sector? Regulatory changes can create risks or opportunities.
  • Capital intensity: Does the business require heavy capital investment? Capital-light businesses often generate better returns.

✓ Sector Analysis Checklist

  • Compare P/E ratios within the sector
  • Look for strong free cash flow generation
  • Assess debt levels relative to peers
  • Evaluate dividend sustainability
  • Check management track record
  • Calculate margin of safety

Common Sector Pitfalls

  • Chasing last year's hot sector
  • Ignoring sector-wide headwinds
  • Overpaying for market leaders
  • Neglecting competitive threats
  • Failing to diversify across sectors
  • Not understanding the business model