3 Low Price-Sales Ratio Stocks

These businesses could be of interest to value investors

Summary
  • SiteOne Landscape Supply Inc, Louisiana-Pacific Corp and UFP Technologies Inc have low price-sales ratios, good profitability and stable financials
  • Usually, value investors like to see these characteristics in a stock
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Value investors could be interested in the stocks listed below, as they have low price-sales ratios (compared to the S&P 500), good profitability and stable financial situations.

SiteOne Landscape Supply Inc

The first stock value investors could be interested in is SiteOne Landscape Supply Inc (SITE, Financial), a Roswell, Georgia-based wholesale distributor of landscape supplies in North America.

The stock traded at $184.73 per share at close on Aug. 4 for a price-sales ratio of 2.86, which is more compelling than the S&P 500's price-sales ratio of 3.16.

SiteOne Landscape Supply Inc has a GuruFocus profitability rating of 6 out of 10, driven by a three-year EPS without NRI growth rate of 28.7%.

The company has received a GuruFocus financial strength rating of 5 out of 10. The rating is driven by a high Altman Z-Score of 6.65 and a Piotroski F-Score of 7 out of 9.

Thanks to a 50.20% increase over the past year, the stock has a market capitalization of $8.23 billion and a 52-week range of $110.41 to $206.26.

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As of August, Wall Street sell-side analysts recommend one strong buy, three buys and four hold ratings for the stock. They have established an average target price of $189.29 per share.

Louisiana-Pacific Corp

The second stock value investors could be interested in is Louisiana-Pacific Corp (LPX, Financial), a Nashville, Tennessee-based manufacturer of building materials and equipment that are mainly used to construct, repair and restyle residential buildings and to realize outdoor architectures.

The stock traded at $55.34 per share at close on Aug. 4 for a price-sales ratio of 1.89, which is more compelling than the S&P 500's price-sales ratio of 3.16.

Louisiana-Pacific Corp has a GuruFocus profitability rating of 7 out of 10, which is driven by a return on capital (ROC) ratio of 88.32%.

The company has received a GuruFocus financial strength rating of 6 out of 10, which is driven by a debt-to-Ebitda ratio of 0.34, a high Altman Z-Score of 7.69 and a Piotroski F-Score of 8 out of 9.

Due to a nearly 83% increase over the past year, the stock now has a market capitalization of $5.66 billion and a 52-week range of $27.01 to $76.35.

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As of August, Wall Street sell-side analysts recommend one strong buy, two buys, six holds and three underperform ratings for the stock. The average target price is $80.38 per share.

UFP Technologies Inc

The third stock value investors could be interested in is UFP Technologies Inc (UFPT, Financial), a Newburyport, Massachusetts-based manufacturer of components, subassemblies, products and packaging for several markets in the U.S., including medical, aerospace and defense.

Shares traded at $66.55 apiece on Aug. 4 for a price-sales ratio of 2.77, which is more compelling than the S&P 500's price-sales ratio of 3.16.

UFP Technologies Inc has a GuruFocus profitability rating of 7 out of 10, which is driven by a return on capital (ROC) ratio of 18.23%.

The company has a GuruFocus financial strength rating of 9 out of 10, driven by an Altman Z-Score of 12.96.

Following a 51.63% increase that took place over the past year, the stock has a market capitalization of $500.89 million and a 52-week range of $36.69 to $66.86.

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As of August, one sell-side analyst in Wall Street recommends a strong buy rating for the stock.

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

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure