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Alberto Abaterusso
Alberto Abaterusso
Articles (2195) 

3 Stocks With Low Price-Sales Ratios

Their businesses are highly profitable and based on solid financials

June 07, 2020 | About:

Investors may want to have a look at the following stocks, as they have low price-sales ratios, high profitability and robust balance sheets.

Walmart Inc

The first company to have a look at is Walmart Inc (NYSE:WMT), a Bentonville, Arkansas-based global discount stores giant.

The stock traded at a price of $121.56 per share at close on June 5 for a price-sales ratio of 0.64, which is higher than the industry median of 0.37.

Walmart has a GuruFocus profitability rating of 7 out of 10, driven by a return on equity of 20.82% (versus the industry median of 6.43%) and a return on assets of 6.39% (versus the industry median of 2.35%).

The retailer has received a positive GuruFocus rating of 6 out of 10 for its financial strength. The debt-to-Ebitda ratio of 2.15 is better positioned than the industry median of 3.46. Also, the Piotroski F-Score of 6 out of 9 indicates that the financial situation at Walmart is stable.

After a 15% share price increase over the past year, the stock has a market cap of $344.25 billion and a 52-week range of $98.85 to $133.38.

The stock holds an overweight recommendation rating on Wall Street.

CVS Health Corp

The second company to have a look at is CVS Health Corp (NYSE:CVS), a Woonsocket, Rhode Island-based provider of healthcare plans and related services in the U.S.

The stock price traded at $68.35 per share at close on June 5 for a price-sales ratio of 0.32, which is more compelling than the industry median of 0.81.

CVS Health Corp has a GuruFocus profitability rating of 8 out of 10, driven by a good operating margin (compared to industry competitors) of 4.87% and a return on equity of 10.85%.

The company has received a positive GuruFocus rating of 5 out of 10 for its financial strength. The Piotroski F-score of 7 out of 10 indicates that the company's financial situation is a healthy one.

After a 26.8% share price increase over the past year, the stock has a market capitalization of $89.34 billion and a 52-week range of $51.72 to $77.03.

The stock holds an overweight recommendation rating on Wall Street.

CBRE Group Inc

The third company to have a look at is CBRE Group Inc (NYSE:CBRE), a Los Angeles-based global provider of commercial real estate services.

The stock traded at $54.02 per share at close on June 5 for a price-sales ratio of 0.75, which is lower than the industry median of 2.04.

CBRE Group has a GuruFocus profitability rating of 8 out of 10, driven by a return on equity of 23.64% (versus the industry median of 5.74%) and a return on assets of 8.65% (versus the industry median of 2.21%).

CBRE has received a GuruFocus score of 6 out of 10 for its financial strength. The Piotroski F-Score of 6 out of 10 indicates that CBRE is a financially stable company.

After a 9.7% share price increase over the past year, the stock has a market cap of $18.11 billion and a 52-week range of $29.17 to $64.75.

The stock holds an overweight recommendation rating on Wall Street.

Disclosure: I have no positions in any securities mentioned in this article.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about gold, silver and precious metals mining industries. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master's Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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