Investors who are seeking value opportunities may be interested in the following stocks, as they have low price-sales ratios, high profitability and robust financials.
Buckle Inc
The first company investors should consider is Buckle Inc (NYSE:BKE), a Kearney, Nebraska-based casual apparel retailer for young men and women in the U.S.
The stock traded at $20.76 per share at close on Sept. 11 for a price-sales ratio of 1.23, which is higher than the industry median of 0.62 still appeals more than the S&P 500 index's 2.37%.
Buckle Inc has a GuruFocus profitability rating of 7 out of 10, driven by a return on equity (ROE) ratio of 23.94%, which is more than three times the industry median of 2.95%, and by an operating margin of 14.82%, which is more than six times the industry median of 2.18%.
The company has received a positive GuruFocus financial strength rating of 5 out of 10 with a cash-to-debt of 0.84 compared to the industry median of 0.5 and a return on invested capital (ROIC) of 16.1%, which is higher than the weighted average cost of capital (WACC) of 7.5%.
- Warning! GuruFocus has detected 5 Warning Signs with BKE. Click here to check it out.
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As a result of an 1.5% increase over the past year, the stock has a market capitalization of $1.03 billion and a 52-week range of $11.76 to $28.52.
Wall Street sell-side analysts recommend a hold rating with an average target price of $14 per share of Buckle Inc.
Usana Health Sciences Inc
The second company investors may want to consider is Usana Health Sciences Inc (NYSE:USNA), a Salt Lake City, Utah-based manufacturer and seller of nutritional and personal care products.
The stock traded at around $77.36 per share at close on Sept. 11 for a price-sales ratio of 1.58, which is more convenient than the S&P 500's 2.37% but above the industry median of 0.95.
Usana Health Sciences Inc has a GuruFocus profitability rating of 9 out of 10 with a return on capital of 153.2%, which is 17 times the industry median of 9%, a ROE of 32%, which is six times the industry median of 5.5%, and by a return on assets (ROA) ratio of 22%, which is nine times the industry median of 2.5.
The company has received a very high GuruFocus financial strength rating of 9 out of 10, driven by the absence of debt and by a ROIC which, at 35.7%, is higher than the WACC of 7.3%.
Following a 7.4% increase over the past year through Friday, the stock has now a market capitalization of $1.63 billion and a 52-week range of $43.01 to $92.26.
Wall Street sell-side analysts recommend an overweight rating with an average target price of $97.50 per share of Usana Health Sciences Inc.
National Presto Industries Inc
The third stock that should be under investors' consideration is National Presto Industries Inc (NYSE:NPK), an Eau Claire, Wisconsin-based provider of household items primarily in North America.
The stock traded at $81.60 per share at close on Sept. 11 for a price-sales ratio of 1.76, which is higher than the industry median of 1.17 but still much more compelling than the S&P 500 index's 2.37%.
National Presto has a very good GuruFocus profitability rating of 7 out of 10, driven by a net profit margin rate of 15%, a ROA ratio of 12.3% and return on capital of 32.11%.
The company has a GuruFocus financial strength rating of 8 out of 10, driven by a cash-to-debt ratio of 37.72 (versus the industry median of 0.56), a debt-equity ratio of 0.01 (versus the industry median of 0.4) and ROIC of 20.8%, which is four times the WACC of 5%.
As a result of a 14.6% decline in the share price over the past year, the market capitalization now stands at $572.95 million and the 52-week range is $66.60 to $97.90.
Wall Street sell-side analysts recommend a buy rating with an average target price of $128 per share of National Presto Industries Inc.
Disclosure: I have no positions in any securities mentioned in this article.
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