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Alberto Abaterusso
Alberto Abaterusso
Articles (2265) 

3 Stocks With Low Price-Sales Ratios

They run profitable businesses and benefit from robust financial conditions

August 05, 2020 | About:

Investors who are seeking value opportunities may find the following stocks interesting, as they have low price-sales ratios, high profitability and robust financial conditions.

Kohl's Corp

The first company investors may be interested in is Kohl's Corp (NYSE:KSS), a Menomonee Falls, Wisconsin-based apparel, beauty and home products department store operator in the U.S.

The stock traded at $19.65 per share at close on Aug. 4 for a price-sales ratio of 0.17, which appeals more than the industry median of 0.56.

Kohl's Corp has a GuruFocus profitability rating of 8 out of 10, driven by a three-year earnings per share (EPS) without non-recurring items (NRI) growth rate of 12% compared to the industry median of 3.35%.

The consumer cyclical stock has received a positive GuruFocus financial strength rating of 5 out of 10, driven by a Piotroski F-Score of 5 out of 9, indicating financial stability.

As a result of a 61% decline over the past year, the stock has a market capitalization of $3.10 billion and a 52-week range of $10.89 to $75.91.

Wall Street sell-side analysts recommend a hold rating for the stock with an average target price of $20.38 per share.

Walgreens Boots Alliance Inc

The second company that may be of interest to investors is Walgreens Boots Alliance Inc (NASDAQ:WBA), a Deerfield, Illinois-based pharmacy retail chain.

The stock traded around $40.93 per share at close on Aug. 4 for a price-sales ratio of 0.26, which is much more compelling than the industry median of 1.73.

Walgreens Boots Alliance Inc has a GuruFocus profitability rating of 8 out of 10, driven by a three-year revenue growth rate of 11.3% compared to the industry median of 7.3%.

The healthcare stock has received a moderate GuruFocus financial strength rating of 4 out of 10, driven by a Piotroski F-Score of 5 out of 9, which indicates that the financial situation of Walgreens Boots Alliance Inc is stable.

The stock price declined by 20.4% over the past year, determining a market capitalization of $35.47 billion and a 52-week range of $36.65 to $64.50.

Wall Street sell-side analysts recommend a hold rating for this stock and have established an average target price of $42.89 per share.

Cemex SAB de CV

The third stock investors may be interested in is Cemex SAB de CV (NYSE:CX), a Mexican building materials company.

The stock traded at $3.18 per share at close on Aug. 4 for a price-sales ratio of 0.02, which is more compelling than the industry median of 0.88.

Cemex SAB de CV has a positive GuruFocus profitability rating of 5 out of 10, driven by an operating margin of 9.58% (versus the industry median of 9.1%) and a three-year revenue growth rate of 2.3%.

The basic materials stock has received a positive GuruFocus financial strength of 5 out of 10, primarily as a result of the absence of debt.

Over the past year, the share price has increased almost 2% for a market capitalization of $4.8 billion, determining a 52-week range of $1.55 to $4.98.

Wall Street sell-side analysts recommend an overweight rating for the stock and have produced an average target price of $3.58 per share.

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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