A Trio of Low Price-Sales Ratio Stocks

These high-return businesses have stable financials

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Value investors could be interested in the stocks listed below, as they have low price-sales ratios, good profitability and stable financial situations.

Valmont Industries Inc

The first stock value investors could be interested in is Valmont Industries Inc (VMI, Financial), an Omaha, Nebraska-based producer and seller of fabricated metal products in the U.S. and internationally.

The stock was trading at $248.40 per share at close on May 26 for a price-sales ratio of 1.77, which is more compelling than the S&P 500's price-sales ratio of 3.08.

Valmont Industries Inc has a GuruFocus profitability rating of 6 out of 10, driven by a return on capital of 24.84% versus the industry median of 11.01%.

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 4.5 and a Piotroski F-Score of 7 out of 9.

Due to a 119.09% increase over the past year, the stock has a market capitalization of $5.28 billion and a 52-week range of $104.11 to $265.09.

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As of May, Wall Street sell-side analysts recommend two strong buys, three buys, three holds and one underperform rating for the stock. They have established an average target price of $249 per share.

MSC Industrial Direct Co Inc

The second stock to consider is MSC Industrial Direct Co Inc (MSM, Financial), a Melville, New York-based supplier of products for the metalworking, repairing and maintenance industries.

The stock was trading at $94.51 per share at close on May 26 for a price-sales ratio of 1.68, which is more compelling than the S&P 500's price-sales ratio of 3.08.

MSC Industrial Direct Co Inc has a GuruFocus profitability rating of 7 out of 10, which is driven by a return on equity (ROE) ratio of 17.24% (versus the industry median of 6.08%).

The company has received a GuruFocus financial strength rating of 6 out of 10, which is driven by a high Altman Z-Score of 5.24 and an interest coverage ratio of 20.23 (versus the industry median of 10.56).

Following a 33.79% increase over the past year, the stock now has a market capitalization of $5.29 billion and a 52-week range of $60.09 to $96.23.

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As of May, Wall Street sell-side analysts recommend three strong buys, two buys and 13 hold ratings for the stock with an average target price of $95.29 per share.

FTI Consulting Inc

The third stock value investors could be interested in is FTI Consulting Inc (FCN, Financial), a Washington, D.C.-based global provider of business advisory services for various private and public organizations worldwide.

Shares were trading at $137.05 per unit on May 26 for a price-sales ratio of 1.96, which is more compelling than the S&P 500's price-sales ratio of 3.08.

FTI Consulting Inc has a GuruFocus profitability rating of 6 out of 10, which is driven by a return on capital (ROC) ratio of 83.07% (versus the industry median of 11.46%) and a three-year Ebitda growth rate of 30.06% (versus the industry median of 4.45%).

The company has a GuruFocus financial strength rating of 6 out of 10, driven by an Altman Z-Score of 4.39.

Thanks to a 12.3% increase that took place over the past year, the stock has a market capitalization of $4.69 billion and a 52-week range of $94.87 to $147.38.

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As of May, Wall Street sell-side analysts recommend four hold ratings for the stock with an average target price of $173.67 per share.

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

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