5 Health Care Stocks Trading With Low Price-Sales Ratios

Pfizer Makes the list

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Jun 07, 2021
Summary
  • 2 of them are trading with a margin of safety.
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According to the GuruFocus All-In-One Screener, a Premium feature, the following companies from the health care industry were trading with low price-sales ratios as of June 7.

Thermo Fisher Scientific

Shares of Thermo Fisher Scientific Inc. (TMO) were trading around $448 with a price-sales ratio of 4.98 and a price-earnings ratio of 22.60.

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The seller of scientific instruments and related equipment has a $176 billion market cap. The share price has risen at an annualized rate of 21.9% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $700, suggesting it is undervalued with a 35.65% of margin of safety.

The company's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 1.14% of outstanding shares, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 0.59% and Pioneer Investments (Trades, Portfolio) with 0.54%.

Pfizer

On Monday, Pfizer Inc. (PFE) was trading around $39.15 with a price-sales ratio of 4.97 and a price-earnings ratio of 19.97.

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The pharmaceutical giant has a market cap of $219 billion. The stock has risen at an annualized rate of 9.98% over the past 10 years.

The discounted cash flow calculator gives the stock a fair value of $28.34, suggesting it is overpriced by 38%.

With a 1.34% stake, the Vanguard Health Care Fund (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.25% and Diamond Hill Capital (Trades, Portfolio) with 0.20%.

Catalyst Pharmaceuticals

Catalyst Pharmaceuticals Inc. (CPRX) was trading around $5.48 on Monday with a price-sales ratio of 4.85 and a price-earnings ratio of 8.06.

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The biopharmaceutical company has a market cap of $566 million. The stock has risen at an annualized rate of 12.42% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $10.04, suggesting it is undervalued with a 45.4% of margin of safety.

The company's largest guru shareholder is Chuck Royce (Trades, Portfolio) with 3.14% of outstanding shares, followed by Caxton Associates (Trades, Portfolio) with 0.02%.

Biomerica

Biomerica Inc. (BMRA) was trading around $3.69 with a price-sales ratio of 4.82.

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The developer and marketer of medical diagnostic products has a market cap of $45.4 million. The stock has risen at an annualized rate of 22.88% over the past decade.

With a 0.23% stake, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder.

MiMedx Group

MiMedx Group Inc. (MDXG) shares were trading around $10.85 with a price-sales ratio of 4.78.

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The developer and marketer of biomaterial products and bioimplants has a $1.2 billion market cap. The share price has risen at an annualized rate of 27.05% over the past decade.

The company's largest guru shareholder is Simons’ firm with 0.07% of outstanding shares.

Disclosure: I do not own any stocks mentioned.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure