Investors in search of bargains may be interested in the following three companies, as their stocks have a low price-to-median-price-sales value when compared to that of the S&P 500 index, which is a benchmark for the U.S. market. The price-to-median-price-sales value of the S&P 500 is 1.43 as of the writing of this article.
This valuation approach, based on the idea that the stock valuation will revert to its historical (10-year) average in terms of price-sales ratio, consists of dividing the current share price by the trailing twelve months revenue per share times the 10-year median price-sales ratio.
Wall Street sell-side analysts have also issued positive recommendation ratings on these securities.
Comcast Corp
The first stock investors may be interested in is Comcast Corp (CMCSA, Financial), a Philadelphia-based global operator of media and technology.
Comcast Corp's price-to-median-price-sales value is 1.07 as of Nov. 10, which ranks higher than 147 out of 427 companies operating in the media - diversified industry.
The revenue per share for the trailing twelve months through the most recent quarter (which ended on Sept. 29) was $22.57, while the 10-Year Median price-sales ratio is nearly 1.98. Thus, the median price-sales value is $44.60.
The stock price closed at $47.77 per share on Tuesday for a market capitalization of $218.56 billion and a 52-week range of $31.71 to $48.23.
Currently, Comcast Corp pays quarterly dividends to its shareholders of 23 cents per share. The next payment will be made on Jan. 27, 2021, for a forward dividend yield of 1.93% as of Nov. 10.
GuruFocus assigned a score of 4 out of 10 to the financial strength rating and of 8 out of 10 to the profitability rating of the company.
Wall Street recommends an overweight recommendation rating with an average target price of $52.42 per share for the stock.
American Express Co
The second stock investors may want to consider is American Express Co (AXP, Financial), a U.S. major provider of credit cards.
American Express Co's price-to-median-price-sales value is 1.19 as of Nov. 10, which ranks higher than 34 out of total 112 companies operating in the credit services industry.
The revenue per share for the trailing twelve months through the most recent quarter (which ended on Sept. 29) was $34.824. The 10-year median price-sales ratio is about 2.8. Thus, its median price-sales value is $97.56.
The stock price traded at $115.95 per share at close on Tuesday for a market capitalization of $93.36 billion and a 52-week range of $67 to $138.13.
American Express Co is currently distributing quarterly dividends to its shareholders with the last payment of 43 cents per common share dated Nov. 10, giving a trailing 12-month dividend yield of 1.48% as of Tuesday.
GuruFocus assigned a score of 3 out of 10 to the company's financial strength rating and of 5 out of 10 to its profitability rating.
Wall Street recommends a hold recommendation rating with an average target price of $107.63 per share for the stock.
FedEx Corp
The third stock investors could be interested in is FedEx Corp (FDX, Financial), a Memphis, Tennessee-based global provider of transportation, e-commerce and business services to individuals and companies.
FedEx Corp's price-to-median-price-sales value is 1.14 as of Nov. 10, which ranks higher than 166 out of 474 companies operating in the transportation industry.
The revenue per share for the trailing twelve months through the most recent quarter (which ended on Aug. 30) was approximately $272.582. The 10-year median price-sales ratio is about 0.86. Therefore, the median price-sales value stands at $234.04.
The stock price was trading at $267.27 per share on Tuesday for a market capitalization of $70.18 billion and a 52-week range of $88.69 to $293.30.
Currently, FedEx Corp pays a quarterly cash dividend of 65 cents per common share with the last payment sent to the shareholders on Oct. 1 for a trailing 12-month dividend yield of 0.97% as of Nov. 10.
GuruFocus assigned a score of 4 out of 10 to the financial strength rating and of 7 out of 10 to the profitability rating of the company.
Wall Street recommends an overweight recommendation rating with an average target price of $296.35 per share for the stock.
Disclosure: I have no position in any security mentioned.
Read more here:
- 3 Stocks Trading Below the GuruFocus Value Line
- 3 Magic Formula Stock Picks for the Value Investor
- A Trio of Stocks Trading Below Intrinsic Value
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