>
  1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Alberto Abaterusso
Alberto Abaterusso
Articles (2616) 

A Trio of Low Price-to-Median-Price-Sales Stocks to Consider

They could be bargains

December 07, 2020 | About:

Investors looking for bargains may be interested in the following three companies, as their stocks have a low price-to-median-ps-value when compared to the average of the S&P 500 (about 1.5 as of the writing of this article).

This approach is based on the idea that the stock valuation will revert to its historical (10-year) average in terms of price-sales ratio. It requires investors to divide the current share price by the trailing twelve-months revenue per share times the 10-year median price-sales ratio.

Wall Street is also positive about these stocks, as sell-side analysts have issued optimistic recommendation ratings for them.

BCE Inc

The first stock investors may be interested in is BCE Inc (NYSE:BCE), a Canadian telecommunications and media services company.

BCE's price-to-median-ps-value is 1.07 as of Dec. 4, which ranks higher than 42.42% of companies that operate in the telecommunication services industry.

BCE's revenue per share for the trailing twelve months through the most recent quarter was $19.11. BCE's 10-Year Median price-sales ratio is about 2.1942. Thus, the median price-sales value is $41.94.

The stock price traded at $44.84 per share at close on Friday for a market capitalization of $40.27 billion and a 52-week range of $31.66 to $49.26.

Currently, BCE pays quarterly dividends to its shareholders with the next payment of 0.833 Canadian dollars (about $0.6515) per common share to be made on Jan. 15, 2021 for a forward dividend yield of 5.66% as of Dec. 4.

GuruFocus assigned a score of 4 out of 10 to the financial strength and of 7 out of 10 to the profitability of the company.

Wall Street recommends an overweight recommendation rating with an average target price of $46.04 per share for the stock.

PPG Industries Inc

The second stock investors could be interested in is PPG Industries Inc (NYSE:PPG), a Pittsburgh, Pennsylvania-based global distributor of specialty chemicals.

PPG Industries' price-to-median-ps-value is 1.36 as of Dec. 4, which ranks higher than 33.44% of companies that operate in the chemicals industry.

PPG Industries' revenue per share for the trailing twelve months through the most recent quarter was $57.802. PPG Industries' 10-year median price-sales ratio is nearly 1.87. Thus, its median price-sales value is $108.08.

The stock price was trading at $146.93 per share at close on Friday for a market capitalization of $34.71 billion and a 52-week range of $69.77 to $149.88.

Currently, PPG Industries pays quarterly dividends to its shareholders with the next distribution of 54 cents per common share scheduled for Dec. 11, giving a forward dividend yield of 1.47% as of Dec. 4.

GuruFocus assigned a score of 6 out of 10 to the company's financial strength and of 8 out of 10 to its profitability.

Wall Street recommends an overweight recommendation rating with an average target price of $150.43 per share for the stock.

Stanley Black & Decker Inc

The third stock investors may be interested in is Stanley Black & Decker Inc (NYSE:SWK), a New Britain, Connecticut-based global seller of power tools and professional industrial products.

Stanley Black & Decker's price-to-median-ps-value is 1.42 as of Dec. 4, which ranks higher than 28.68% of companies that operate in the industrial products industry.

Stanley Black & Decker's revenue per share for the trailing twelve months through the most recent quarter was approximately $89.93. Stanley Black & Decker's 10-year median price-sales ratio is about 1.41. Therefore, the median price-sales value stands at $127.05.

The stock price was trading at $180.85 per share on Friday for a market capitalization of $28.98 billion and a 52-week range of $70 to $195.

Currently, Stanley Black & Decker pays a quarterly cash dividend of 70 cents per common share with the next payment to issue on Dec. 15 for a forward dividend yield of 1.55% as of Dec. 4.

GuruFocus assigned a score of 5 out of 10 to the financial strength and of 8 out of 10 to the profitability of the company.

Wall Street recommends an overweight recommendation rating with an average target price of $199.63 per share for the stock.

Disclosure: I have no position in any security mentioned.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

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

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Alberto Abaterusso


User Generated Screeners


pjmason14Momentum
wigbertHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)