Investors may be interested in the following stocks, as they have low price-sales ratios, high profitability and solid balance sheets.
Calloway's Nursery Inc
The first company that meets the above-mentioned criteria is Calloway's Nursery Inc (CLWY, Financial), a Fort Worth, Texas-based operator of garden centers in the US.
The stock was trading at a price of $5.40 per share at close on May 22 for a price-sales ratio of 0.7, which is higher than the industry median of 0.47.
Calloway's Nursery has a GuruFocus profitability rating of 7 out of 10, a three-year Ebitda growth rate of 28.1% (versus the industry median of 6.05%) and a three-year EPS without NRI growth rate of 46.7% (versus the industry median of 4.8%).
The company has received a positive GuruFocus rating of 6 out of 10 for its financial strength. The Piotroski F-Score of 4 out of 9 indicates that the financial situation is stable.
As a result of a 20% stock price decline over the past year, the stock has a market cap of $39.74 million and a 52-week range of $3.25 to $8.
Luxfer Holdings PLC
The second company that meets the above-mentioned criteria is Luxfer Holdings PLC (LXFR, Financial), a British supplier of high-performance materials and high-pressure gas cylinders to companies that operate in several industries.
The stock price was trading at $14.20 per share at close on May 22 for a price-sales ratio of 0.93, which is on par with the industry median.
Luxfer Holdings has a GuruFocus profitability rating of 7 out of 10, driven by an operating margin of 10.75% versus the industry median of 6.15%.
The company has received a positive GuruFocus rating of 5 out of 10 for its financial strength. The Piotroski F-score of 5 out of 10 indicates that the company's financial situation is stable. The Altman Z-Score of 3.06 (greater than 2.99) tells that the company has a low likelihood of bankruptcy for the next two years.
As a result of a 42.7% share price decline over the past year, the stock has a market capitalization of $406.80 million and a 52-week range of $10.27 to $26.25.
Wall Street sell-side analysts recommend an overweight rating for this stock and have established an average target price of $20.17 per share.
CDW Corp
The third company that meets the above-mentioned criteria is CDW Corp (CDW, Financial), a Lincolnshire, Illinois-based provider of integrated information technology solutions to several private and public organizations in North America and the United Kingdom.
The stock was trading at $105.74 per share at close on May 22 for a price-sales ratio of 0.84 versus the industry median of 1.94.
CDW has a GuruFocus profitability rating of 8 out of 10. The company has a return on equity ratio of 80.86% (versus the industry median of 5.1%), a return on total assets of 9.51% (versus the industry median of 2.08%) and a return on capital of 153.46% (versus the industry median of 18.85%).
CDW has received a GuruFocus score of 5 out of 10 for its financial strength. The Piotroski F-Score of 8 out of 10 indicates that CDW is a financially stable company. The Altman Z-Score of 3.73 (greater than 2.99) indicates low risk of bankruptcy for the next two years.
As a result of a 2.5% share price increase over the past year, the stock has a market cap of $15.05 billion and a 52-week range of $73.39 to $146.09.
Wall Street sell-side analysts recommend an overweight rating for this stock and have established an average target price of $116.86 per share.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
- 3 Stocks With Low Forward Price-Earnings Ratios
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- A Trio of Small Caps Growing Earnings Fast
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