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The healthcare sector has been performing significantly well as of late and has consistently outpaced the S&P 500 (SPDR S&P 500 Trust ETF: SPY). When comparing the returns of the healthcare sector versus those of the S&P 500, healthcare has dominated on all recent time frames, including one year, year to date (YTD), three month, and one month. Here is a detailed look of these returns:

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Shown by the graph below, the healthcare sector began to outperform the S&P 500 in the second quarter of 2012 and has continued to do so, yielding a one year 18.30% return versus the one year 11.21% return of the S&P 500:

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As healthcare stocks continue to perform well, some value can still be found in the sector. Below are four undervalued healthcare stocks with low price to book (P/B) ratios, low price to sales (P/S) ratios, above-average projected earnings growth, and positive return on equity (ROE), sorted by upside potential (based on average analysts price target):

1. Symmetry Medical, Inc. (SMA), a medical appliances and equipment manufacturer, recently broke above resistance at the $8.50 price level and, since doing so, has continued to move closer to its analyst target. The company's current financials show potential value with a projected EPS growth (YoY) of 96.00%, a 1.29 P/B ratio, a 1.02 P/S ratio, and a 0.99% ROE. Analyst opinion stands at zero sell, zero underperform, one hold, two buy, and two strong buy recommendations with a $12.83 average price target, 21.50% above the stock's current price.

Please note that Symmetry Medical, Inc. appears to be consolidating around $11.00 and could, therefore, use this price as a level of resistance and/or a potential break out point.

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2. Select Medical Holdings Corporation (SEM), a hospitals holdings company, looks to have established support at the $9.00 price level and is now trading just above this level, potentially offering a good entry point. The company's current financials show potential value with a projected EPS growth (YoY) of 24.76%, a 1.47 P/B ratio, a 0.45 P/S ratio, and a 17.06% ROE. Analyst opinion stands at zero sell, one underperform, six hold, zero buy, and zero strong buy recommendations with an $11.40 average price target, 19.00% above the stock's current price.

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3. CONMED Corporation (CNMD), a medical appliances and equipment manufacturer, has been trending sharply upward since showing an inverse head and shoulders pattern toward the end of 2012. The company's current financials show potential value with a projected EPS growth (YoY) of 19.33 %, a 1.39 P/B ratio, a 1.10 P/S ratio, and a 0.76 % ROE. Analyst opinion stands at zero sell, zero underperform, two hold, zero buy, and three strong buy recommendations with a $33.50 average price target, 13.29% above the stock's current price.

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4. Universal American Corp (UAM), a healthcare plans company, recently found support at the $7.75 price level and has since established a strong uptrend. The company's current financials show potential value with a projected EPS growth (YoY) of 69.21%, a 0.75 P/B ratio, a 0.37 P/S ratio, and a 1.96% ROE. Analyst opinion stands at zero sell, three underperform, four hold, zero buy, and two strong buy recommendations with a $10.25 average price target, 7.11% above the stock's current price.

Please note that Universal American Corp appears to be consolidating around $9.50 and could, therefore, use this price as a level of resistance and/or a potential break out point.

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Disclaimer: This list of equities is offered as speculation. The fundamental measurements listed above should be used in conjunction with other statistics to determine investment opportunity. Please perform thorough fundamental and technical research before investing.

Source: 4 Bargains In The Well-Performing Healthcare Sector