Investors may be interested in the following stocks, as they have low price-sales ratios, high profitability and good financial conditions.
Southwest Airlines Co
The first company investors may be interested in is Southwest Airlines Co (LUV, Financial), a Dallas, Texas-based passenger airline company serving the U.S. and nearby international markets.
The stock was trading at $34.13 per share at close on July 17 for a price-sales ratio of 0.83, which is less appealing than the industry median of 0.66 but still below 1.
Southwest Airlines Co has a GuruFocus profitability rating of 7 out of 10, driven by a return on equity ratio (ROE) of 18.73% (versus the industry median of 5.5%) and a return on assets (ROA) of 6.89% (versus the industry median of 2.37%).
The airline company has received a positive GuruFocus financial strength rating of 6 out of 10, driven by an interest coverage ratio of 27.88 (versus the industry median of 4.2), which tells that Southwest Airlines Co can withstand the current financial burdens.
As a result of 35.2% fall over the past year, the stock has a market capitalization of $20.12 billion and a 52-week range of $22.47 to $58.83.
Wall Street sell-side analysts recommend an overweight rating for the stock with an average target price of $41.82 per share.
Henry Schein Inc
The second company investors may be interested in is Henry Schein Inc (HSIC, Financial), a Melville, New York-based provider of medical products and services to several healthcare professionals.
The stock was trading around $66.97 per share at close on July 17 for a price-sales ratio of 0.98, which is less compelling than the industry median of 0.43 but still below 1.
Henry Schein Inc has a GuruFocus profitability rating of 7 out of 10, driven by a ROE ratio of 24.1% (versus the industry median of 7.64%) and a ROA ratio of 9.39% (versus the industry median of 2.4%).
The company has received a positive GuruFocus financial strength rating of 6 out of 10, driven by a debt-equity ratio of 0.33 and a high interest coverage ratio of 17.36. Also, a Piotroski F-Score of 7 out of 9 and an Altman Z-Score of 3.94 indicate that Henry Schein Inc is not in danger of bankruptcy.
The stock price was flat over the past year for a market capitalization of $9.56 billion and a 52-week range of $41.85 to $73.99.
Wall Street sell-side analysts recommend a hold rating for this stock and have produced an average target price of $60.31.
Dollar Tree Inc
The third company investors may be interested in is Dollar Tree Inc (DLTR, Financial), a Chesapeake, Virginia-based discount stores operator.
The stock was trading at $95.46 per share at close on July 17 for a price-sales ratio of 0.94, which is less compelling than the industry median of 0.41 but is still below 1.
Dollar Tree Inc has a GuruFocus profitability rating of 8 out of 10, driven by an operating margin of 6.67% (versus the industry median of 2.85%) and a net margin of 3.5% (versus the industry median of 1.56%).
The retailer has received a positive GuruFocus financial strength of 5 out of 10, driven by a Piotroski F-Score of 5 out of 9, which indicates a stable financial situation. Furthermore, an interest coverage ratio of 9.67 tells that the retailer can keep up with its interest payments.
Following an 11.2% downturn in the share price over the past year, the stock has a market capitalization of $22.65 billion and a 52-week range of $60.2 to $119.71.
Wall Street sell-side analysts recommend an overweight rating and have established an average target price of $105.50 per share for the stock.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
- 3 Stocks Trading Below Intrinsic Value
- 3 Stocks for Your 'Buy and Hold' Approach
- 3 Capital Intensive Stocks for the Value Investor
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
