Value investors may want to consider the companies listed below as they have appealing price-sales ratios, good profitability and a solid financial situation. As a benchmark for the purpose of this research, the S&P 500 Index has a price-sales ratio of 2.80 as of Feb. 2.
Thus, these stocks could be value opportunities.
Gibraltar Industries Inc
The first stock to consider is Gibraltar Industries Inc. ROCK, a Buffalo, New York-based manufacturer and distributor of building products and equipment for several North American and international markets, including the renewable energy and infrastructure industries.
The stock price was trading at $92.64 per share at close on Feb. 2 for a price-sales ratio of 2.71, which appeals more than the S&P 500's price-sales ratio of 2.80.
Gibraltar Industries has a GuruFocus profitability rating of 6 out of 10, driven by a return on assets of 8.59% versus the industry median of 2.23% and a return on capital of 75.45% versus the industry median of 12.61%.
The company has received a GuruFocus financial strength rating of 9 out of 10. The rating is driven by a cash-to-debt ratio of 7.71 and an interest coverage ratio of 332.02, both of which are above the industry median.
Following a 71% increase over the past year, the stock now has a market capitalization of $3.01 billion and a 52-week range of $30.60 to $103.02.
As of February, Wall Street sell-side analysts issued three buy rating. They have produced an average target price of $96.67 per share.
Columbia Sportswear
The second stock investors may want to consider is Columbia Sportswear Co. COLM, a Portland, Oregon-based apparel and footwear manufacturer with operations in the Americas and overseas.
The stock traded at $90.99 per share at close on Feb. 2 for a price-sales ratio of 2.41, which is more compelling than the S&P 500's price-sales ratio of 2.80.
Columbia Sportswear has a GuruFocus profitability rating of 9 out of 10, which is driven by a ROA of 4.61% versus the industry median of 0.11%.
The company has received a GuruFocus financial strength rating of 8 out of 10. It is driven by an Altman Z-Score of 6.47 and an interest coverage ratio of 140.08 versus the industry median of 4.3.
As a result of a 3.7% decrease over the past year, the stock now has a market capitalization of $6.02 billion and a 52-week range of $51.82 to $99.23.
As of February, Wall Street sell-side analysts have issued six strong buy, three buy, nine holds and one underperform rating for this stock and have established an average target price of $94.10 per share.
JB Hunt Transport Services
The third stock investors may want to consider is JB Hunt Transport Services Inc. JBHT, a Lowell, Arkansas-based provider of surface transportation and shipping services in North and Central America.
The stock was trading at $140.60 per share at close on Feb. 2 for a price-sales ratio of 1.56, which is more appealing than the S&P 500's price-sales ratio of 2.80.
JB Hunt has a GuruFocus profitability rating of 8 out of 10. It is driven by a ROE of 21.04% versus the industry median of 3.11%, a ROA of 8.99% versus the industry median of 1.19% and a return on capital ratio of 17.92% versus the industry median of 5.53%.
The company has a GuruFocus financial strength rating of 6 out of 10, driven by a debt-to-Ebitda ratio of 1.18 versus the industry median of 4.3 and an Altman Z-Score of 4.86.
Following a 24.11% increase over the past year, the stock has a market capitalization of $14.85 billion, while the 52-week range is $75.29 to $156.74.
As of February, Wall Street sell-side analysts issued seven strong buy, six buy and nine hold ratings for the stock and have established an average target price of $153.95 per share.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
- 3 Stocks That Could Represent Bargain Opportunities
- A Trio of Stocks Growing Free Cash Flow Fast
- 3 Stocks Growing Capex Fast
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