A Trio of Low Price-Sales Ratio Stocks

These high-return businesses have stable financial conditions

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Alberto Abaterusso
Apr 28, 2021
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Value investors may want to consider the stocks listed below, as they have low price-sales ratios, good profitability and stable financial situations.

Ciena Corp

The first stock value investors may want to consider is Ciena Corp (

CIEN, Financial), a Hanover, Maryland-based provider of global telecommunications network operators with various communications equipment.

The stock was trading at $52.91 per share at close on April 27 for a price-sales ratio of 2.39, which is more compelling than the S&P 500's price-sales ratio of 3.07.

Ciena has a GuruFocus profitability rating of 6 out of 10, driven by a return on capital of 54.54% versus the industry median of 10.4%.

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 3.41, a Piotroski F-Score of 7 out of 9 and an interest coverage ratio of 17.12 (versus the industry median of 16.65).

Thanks to a 12.26% increase over the past year, the stock has a market capitalization of $8.20 billion and a 52-week range of $38.03 to $61.51.

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As of April, Wall Street sell-side analysts recommended six strong buys, 11 buys and four hold ratings for the stock with an average target price of $59.56 per share.

II-VI Inc

The second stock that value investors may want to consider is II-VI Inc (

IIVI, Financial), a Saxonburg, Pennsylvania-based global manufacturer and marketer of engineered materials, optoelectronic components and several other devices.

The stock traded at $75.58 per share at close on April 27 for a price-sales ratio of 2.65, which is more compelling than the S&P 500's price-sales ratio of 3.07.

II-VI has a GuruFocus profitability rating of 8 out of 10, which is driven by a three-year revenue growth rate of 23% (versus the industry median of 1.4%).

The company has received a GuruFocus financial strength rating of 6 out of 10, which is driven by a high Altman Z-Score of 3.26 and a Piotroski F-Score of 7 out of 9.

As a result of a 113.74% increase over the past year, the stock now has a market capitalization of $7.92 billion and a 52-week range of $30.61 to $100.44.

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As of April, Wall Street sell-side analysts recommended four buys and one hold rating for the stock with an average target price of $105.76 per share.

UFP Industries Inc

The third stock value investors may want to consider is UFP Industries Inc (

UFPI, Financial), a Grand Rapids, Michigan-based lumber and wood producer.

Shares closed at $84.93 apiece on April 27 for a price-sales ratio of 0.87, which is more compelling than the S&P 500's price-sales ratio of 3.07.

UFP Industries has a GuruFocus profitability rating of 9 out of 10, which is driven by a three-year Ebitda growth rate of 21.8% (versus the industry median of 1.6%).

The company has a positive GuruFocus financial strength rating of 7 out of 10, driven by an Altman Z-Score of 5.76 and an interest coverage ratio of 46.56 (versus the industry median of 5.66).

Due to a 95.74% increase that happened over the past year, the stock has a market capitalization of $5.24 billion and a 52-week range of $35.59 to $86.05.

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As of April, Wall Street sell-side analysts recommended two strong buy ratings and one hold rating for the stock. The average target price is $90.17 per share.

Disclosure: I have no positions in any securities mentioned in this article.

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