Doing my usual research , I gave a look at Healthcare sector. I found many companies undervalued but I had to exclude them cause they didn’t satisfy my parameters.
As usual my preference go toward quality stocks with good competitive advantage , solid balance sheet and rich in cash flow.
Metrics:
- Healthcare sector
- Large Cap
- Competitive advantage ≥ Narrow
- Trading lower than their Price/Fair Value ( Morningstar DCF model)
- P/E < P/E 5Yrs
- Fwd P/E < than benchmark ( S&P 1500 Healthcare)
- Positive FCF
- Postive EPS forecast
Good reading and please do your own due diligence before investing. Thanks.
