5 Industrial Stocks With Low Price-Sales Ratios

Boeing makes the list

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Dec 23, 2020
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According to the GuruFocus All-In-One Screener, a Premium feature, the following industrial stocks were trading with low price-sales ratios as of Dec. 23.

United Parcel Service

Shares of United Parcel Service Inc. (UPS) were trading around $174.56 with a price-sales ratio of 1.89 and a price-earnings ratio of 33.19.

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The parcel delivery company has a $150.89 billion market cap. The share price has risen at an annualized rate of 10.90% over the past decade.

The discounted cash flow calculator gives the stock a fair value of $78.60, suggesting it is overpriced by 122%.

The company's largest guru shareholder is Bill Gates (Trades, Portfolio)' foundation with 0.52% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.39% and PRIMECAP Management (Trades, Portfolio) with 0.38%.

Honeywell International

On Wednesday, Honeywell International Inc. (HON) was trading around $207.94 per share with a price-sales ratio of 4.47 and a price-earnings ratio of 29.83.

The company has a market cap of $145.91 billion. The stock has risen at an annualized rate of 16.31% over the past 10 years.

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The discounted cash flow calculator gives the stock a fair value of $121, suggesting it is overpriced by 71.82%.

With a 0.21% stake, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Diamond Hill Capital (Trades, Portfolio) with 0.17% and Mairs and Power (Trades, Portfolio) with 0.15%.

Boeing

Boeing Co. (BA) was trading around $218.78 on Wednesday with a price-sales ratio of 2.04.

The aerospace and defense firm has a market cap of $123.51 billion. The stock has risen at an annualized rate of 14.84% over the past decade.

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The company's largest guru shareholder is the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.20% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.08%.

Raytheon Technologies

Raytheon Technologies Corp. (RTX) was trading around $69.25 with a price-sales ratio of 0.77 and a price-book ratio of 1.54.

The diversified aerospace and defense industrial company has a market cap of $107 billion. The stock has risen at an annualized rate of 6.45% over the past decade.

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With a 2% stake, Dodge & Cox is the company's largest guru shareholder, followed by Chris Davis (Trades, Portfolio) with 0.73% and Barrow, Hanley, Mewhinney & Strauss with 0.43%.

3M

Shares of 3M Co. (MMM) were trading around $174.78 with a price-sales ratio of 3.21 and a price-book ratio of 8.49.

The multinational conglomerate has an $100.82 billion market cap. The share price has risen at an annualized rate of 9.54% over the past decade.

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The discounted cash flow calculator gives the stock a fair value of $95.43, suggesting it is overpriced by 83%.

The company's largest guru shareholder is Ken Fisher (Trades, Portfolio) with 0.81% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.44% and Jeremy Grantham (Trades, Portfolio) with 0.28%.

Disclosure: I do not own any stocks mentioned.

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