3 Undervalued Biotechs Worth Adding to Your Watch List
If you're like me, your investment watch list is overflowing with dozens of stocks and price alerts. I love getting a good deal, especially for equities with high growth potential, like biotech companies. There's just one problem: Bargains in that industry are quite rare.
In fact, valuations in the biotech space skew high. The average trailing price-to-earnings (P/E) ratio rests at 480, and the average price-to-sales (P/S) multiple is just above 8. So, a stock with lower ratios than those could be viewed as a bargain -- assuming that there isn't a major issue depressing its price. Let's examine three biotechs trading at lower than average valuations and consider whether they might be worth putting on your watch list.
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Source Fool.com