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Alberto Abaterusso
Alberto Abaterusso
Articles (2392) 

A Trio of Large Caps With Low Price-Sales Ratios

They are cheaper than the S&P 500's historical mean

October 25, 2020 | About:

Investors who are seeking for value opportunities may be interested in the following stocks, as their price-sales ratios are lower than the S&P 500's historical mean, which is 1.57 as of the writing of this article.

Furthermore, sell-side analysts on Wall Street predict these stocks will increase their sales significantly this year and in 2021.

UnitedHealth Group Inc

The first company investors could be interested in is UnitedHealth Group Inc (NYSE:UNH), a Minnetonka, Minnesota-based diversified healthcare company.

As of Oct. 23, UnitedHealth Group has a price-sales ratio of 1.27, which results from a share price of $330.60 and revenue per share of $261.07 for the trailing twelve months ended on Sept. 29.

As a result of a nearly 34% increase over the past year, the stock has a market capitalization of $314.18 billion and a 52-week range of $187.72 to $335.65.

On Wall Street, sell-side analysts forecast the company will increase its revenue by 5.7% to $255.91 billion this year and by 8.7% to $278.09 billion in 2021.

As of October, the stock has 11 strong buy recommendation ratings and 11 buy recommendation ratings with an average target price of $357.84 per share.

Costco Wholesale Corp

The second company investors may be interested in is Costco Wholesale Corp. (NASDAQ:COST), an Issaquah, Washington-based operator of warehouse discount stores.

As of Oct. 23, Costco has a price-sales ratio of 1, which results from a share price of $374.60 and revenue per share of $375.64 for the trailing twelve months ended on Aug. 29.

Following a 25.3% increase over the past year through Friday, the stock has a market capitalization of $165.28 billion and a 52-week range of $271.28 to $384.87.

On Wall Street, sell-side analysts predict the company's total revenues to increase by 7.2% to $178.74 billion this year and by 7.3% to $191.7 billion in 2021.

As of October, the stock has seven strong buy recommendation ratings, 11 buy recommendation ratings and 11 hold recommendation ratings for an average target price of $368.07 per share.

Sony Corp

The third stock that could be of interest to investors is Sony Corp (NYSE:SNE), a Japanese global consumer electronics company.

As of Oct. 23, Sony Corp has a price-sales ratio of 1.18, which results from a share price of $75.43 and a revenue per share of $61.16 for the trailing twelve months ended on June 29.

As a result of a 27.72% increase in the share price over the past year, the market capitalization now trades at around $93.05 billion and the 52-week range is $50.94 to $84.15.

On Wall Street, sell-side analysts predict the company will see total revenues increase by 7.2% up to $79.71 billion this year and by 8.2% up to $86.25 billion in 2021.

As of October, the stock has two strong buy recommendation ratings for an average target price of $100.48 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 how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. 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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