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Alberto Abaterusso
Alberto Abaterusso
Articles (2542) 

3 Low Price-Sales Ratio Stock Picks

These profitable businesses have also robust financial conditions

January 08, 2021 | About:

Value investors may want to consider the stocks listed below, as they have low price-sales ratios, good profitability and solid financial conditions. The combo of these three aspects yields a high probability that these stocks could be value opportunities, in my opinion.

JOYY Inc

The first stock investors may want to consider is JOYY Inc (NASDAQ:YY), a Guangzhou, China-based internet content and information company operating a social media platform in China and internationally.

The stock price was trading at $80.29 per share at close on Jan. 7 for a price-sales ratio of 1.92, which is more compelling than the S&P 500's price-sales ratio of 2.77.

JOYY Inc has a GuruFocus profitability rating of 8 out of 10, driven by a net profit margin of 40.07% versus the industry median of 1.65%.

The company has received a GuruFocus financial strength rating of 7 out of 10. The rating is driven by a high Altman Z-Score of 3.85.

As a result of a nearly 25% increase over the past year, the stock has a market capitalization of $6.5 billion and a 52-week range of $41.33 to $108.21.

As of January, Wall Street sell-side analysts recommend seven strong buys, 11 buys, and two holds. They have established an average target price of $125.91 per share.

Curtiss-Wright Corp

The second stock to consider is Curtiss-Wright Corp (NYSE:CW), a Davidson, North Carolina-based manufacturer and supplier of components to several industries and markets worldwide.

The stock price was trading at $117.49 per share at close on Jan. 7 for a price-sales ratio of 2.09, which is more compelling than the S&P 500's price-sales ratio of 2.77.

Curtiss-Wright Corp has a GuruFocus profitability rating of 8 out of 10, which is driven by a return on capital (ROC) ratio of 45.75% versus the industry median of 9.34%.

The company has received a GuruFocus financial strength rating of 6 out of 10. It is driven by an Altman Z-Score of 3.47.

Following a 19.6% decrease over the past year, the stock now has a market capitalization of $4.88 billion and a 52-week range of $70.56 to $149.90.

As of January, Wall Street sell-side analysts recommend one strong buy, three buys and four hold ratings for this stock and have established an average target price of $134.75 per share.

Momo Inc

The third stock to consider is Momo Inc (NASDAQ:MOMO), a Beijing, China-based internet content and information company that operates a social network and entertainment platform in China.

The stock price was trading at $13.93 per share at close on Jan. 7 for a price-sales ratio of 1.38, which is more appealing than the S&P 500 price-sales ratio of 2.77.

Momo has a GuruFocus profitability rating of 7 out of 10. It is driven by a return on capital (ROC) ratio of 724.85% versus the industry median of 19.47%.

The company has a positive GuruFocus financial strength rating of 7 out of 10, driven by an Altman Z-Score of 3.09.

Following a 62.2% decrease over the past year, the stock has a market capitalization of $2.9 billion, while the 52-week range is $12.52 to $40.87.

As of January, Wall Street sell-side analysts recommend five strong buys, ten buys and one hold rating for this stock and have established an average target price of $19.91 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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