Investors may be interested in the following stocks , as they have low price-sales ratios, high profitability and good financial conditions.
RF Industries Ltd
The first company that meets the above-listed criteria is RF Industries Ltd (RFIL, Financial), a San Diego, California-based manufacturer and marketer of electrical interconnect products and systems.
The stock price closed at $5 per share on Monday, April 27 for a price-sales ratio of 0.86 versus the industry median of 0.89.
RF Industries has a GuruFocus profitability rating of 7 out of 10, return on total assets of 8.05% (versus the industry median of 3.17%) and a three-year revenue growth rate of 17.7% (versus the industry median of 5.1%).
The company has received the same rating of 7 out of 10 for its financial strength, which is driven by a high cash-debt ratio of 12.08 (versus the industry median of 0.96), a low debt-to-equity ratio of 0.04 (versus the industry median of 0.32) and a strong Altman Z-Score of 6.5.
RF Industries’ share price declined by nearly 35% in the past year.
The stock has a market cap of $48.79 million and a 52-week range of $3.31 to $8.89.
Wall Street sell-side analysts recommend buying this stock and have established an average target price of $9 per share.
AMN Healthcare Services Inc
The second company that meets the above-listed criteria is AMN Healthcare Services Inc (AMN, Financial), a Dallas-based provider of workforce solutions and staffing services to U.S. medical care facilities.
The stock price closed at $45.75 per share on April 27 for a price-sales ratio of 0.98 versus the industry median of 1.47.
AMN Healthcare Services has a GuruFocus financial strength rating of 5 out of 10, which is mainly driven by a high interest coverage ratio of 6.22.
The company has received a higher rating of 7 out of 10 for its profitability, on the back of a return on equity of 16.71% (versus the industry median of 6.74%) and a high return on capital of 56.03% (versus the industry median of 12.9%).
AMN Healthcare Services’ share price fell by 11.6% in the past year.
The stock has a market cap of $2.14 billion and a 52-week range of $43.78 to $89.22.
Wall Street sell-side analysts recommend an overweight rating for this stock and have set an average target price of $75.50 per share.
Landstar System Inc
The third company that meets the above-listed criteria is Landstar System Inc (LSTR, Financial), a Jacksonville, Florida-based provider of integrated services of freight and logistics.
The stock price closed at $108.03 per share on April 27 for a price-sales ratio of 1.07 versus the industry median of 0.57.
Landstar System has a GuruFocus profitability rating of 9 out of 10. The company has a high return on equity ratio of 28.83% (versus the industry median of 6.63%), a high return on total assets ratio of 15.21% (versus the industry median of 2.66%) and a return on capital of 56.68% (versus the industry median of 9.13%).
Landstar System has received a score of 8 out of 10 for its financial strength. This score is driven by a high cash-debt ratio of 1.53 (versus the industry median of 0.27), a low debt-to-equity ratio of 0.23 (versus the industry median of 0.74), a low debt-to-Ebitda ratio of 0.44 (versus the industry median of 3.73) and a strong Altman Z-Score of 9.37.
Landstar Systems’ share price declined slightly by 1.4% in the past year.
The stock has a market cap of $4.15 billion and a 52-week range of $85.30 to $120.23
Wall Street sell-side analysts recommend holding this stock and have established an average target price of $101.90 per share.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
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- 3 Stocks Trading at Attractive Valuations
- 3 Potential Opportunities for the Value Investor
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