5 Undervalued Healthcare Stocks

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.