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Alberto Abaterusso
Alberto Abaterusso
Articles (2622) 

A Trio of Stocks With Appealing Price-Sales Ratios

These profitable businesses have also robust financial conditions

February 03, 2021 | About:

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. (NASDAQ: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. (NASDAQ: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. (NASDAQ: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.

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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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