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 (YY, Financial), 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 (CW, Financial), 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 (MOMO, Financial), 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.
Read more here:
- A Trio of Stocks Growing Capex Fast
- A Trio of Small Caps for the Growth-Focused Investor
- 3 High-Return Businesses With Robust Balance Sheets
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