4 Low Price-Sales Ratio Stocks

Value investors may find these businesses attractive

Summary
  • Costco Wholesale Corp, Sony Group Corp, CVS Health Corp and British American Tobacco PLC have low price-sales ratios and good profitability.
  • These characteristics could make these stocks attractive to value investors.
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Value investors may find the following stocks to be attractive opportunities, as they have lower price-sales ratios compared to the S&P 500 and good profitability.

Costco Wholesale Corp

The first stock value investors could be interested in is Costco Wholesale Corp. (COST, Financial), an Issaquah, Washington-based operator of warehouse discount stores located in the U.S. and internationally.

The stock traded at $492.43 per share at close on Jan. 28 for a price-sales ratio of 1.08, which is more compelling than the S&P 500's price-sales ratio of 2.93.

Costco Wholesale Corp. has a GuruFocus profitability rating of 8 out of 10, driven by a return on capital (ROC) ratio of 27.47% versus an industry median of 12.13%.

After a 40.49% increase over the past year, the stock has a market capitalization of $218.36 billion and a 52-week range of $307 to $571.48.

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Wall Street sell-side analysts recommend a median rating of overweight for this stock and have established an average target price of $561.75 per share.

Sony Group Corp

The second stock value investors could be interested in is Sony Group Corp. (SONY, Financial), a Tokyo-based global consumer electronics company.

The stock traded at $106.84 per share at close on Jan. 28 for a price-sales ratio of 1.61, which is more compelling than the S&P 500's price-sales ratio of 2.93.

Sony Group Corp. has a GuruFocus profitability rating of 5 out of 10, which is driven by a return on capital (ROC) ratio of 86.58% versus an industry median of 12.89%.

Following an 8.43% increase over the past year, the stock now has a market capitalization of $132.43 billion and a 52-week range of $91.74 to $133.75.

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Wall Street sell-side analysts recommend a median rating of overweight for this stock and have established an average target price of $149.11 per share.

CVS Health Corp

The third stock value investors could be interested in is CVS Health Corp. (CVS, Financial), a Woonsocket, Rhode Island-based retail pharmacy chain company.

Shares traded at $109.27 apiece on Jan. 28 for a price-sales ratio of 0.51, which is more compelling than the S&P 500's price-sales ratio of 2.93.

CVS Health Corp. has a GuruFocus profitability rating of 7 out of 10, which is driven by a return on equity (ROE) ratio of 10.62%, ranking better than 59.09% of 22 companies that operate in the health care plans industry.

After a 52.91% increase that occurred over the past year, the stock has a market capitalization of $144.24 billion and a 52-week range of $68.02 to $109.34.

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Wall Street sell-side analysts recommend a median rating of overweight for this stock and have established an average target price of $133.21 per share.

British American Tobacco PLC

The fourth stock value investors could be interested in is British American Tobacco PLC (BTI, Financial), a London, U.K.-based tobacco giant.

Shares traded at $42.89 apiece on Jan. 28 for a price-sales ratio of 2.84, which is more compelling than the S&P 500's price-sales ratio of 2.93.

British American Tobacco PLC has a GuruFocus profitability rating of 8 out of 10, which is driven by an operating margin ratio of 38.06%, ranking better than 86.36% of 44 companies that operate in the tobacco products industry.

After a nearly 17% increase that occurred over the past year, the stock has a market capitalization of $98.42 billion and a 52-week range of $33.62 to $43.90.

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Wall Street sell-side analysts recommend a median rating of buy for this stock and have established an average target price of $52.99 per share.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure