The 3 Cheapest Medical Device Stocks

The price-to-earnings ratio has its supporters and detractors, but this simple statistic can be an easy way for investors to gauge how cheap an average stock is on the fly. For some stocks, however, the P/E ratio is a misleading statistic -- particularly when earnings betray a poor business model. With stocks' rise this year and earnings on the upswing, however, is the P/E ratio a suitable fit in the medical device industry, particularly as many device stocks have soared in 2013?

Using data compiled by stock screening site Finviz.com, here are three of the cheapest medical device stocks in the industry as sorted by the P/E ratio. Are these picks worth your investment -- or is this simple statistic hiding lagging financials and flailing companies? Motley Fool contributor Dan Carroll tells you what you need to know about the device industry's cheapest pickings below.

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