3 Low Price-Sales Ratio Stocks

Value investors could be interested in these businesses

Summary
  • Acuity Brands Inc, Regal Beloit Corp and Ollie's Bargain Outlet Holdings Inc have low price-sales ratios, good profitability and stable financials
  • Usually, these characteristics are highly appreciated by value investors
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Value investors could be interested in the following stocks, as they have low price-sales ratios (compared to the S&P 500), good profitability and stable financial situations.

Acuity Brands Inc

The first stock value investors could be interested in is Acuity Brands Inc (AYI, Financial), an Atlanta, Georgia-based distributor of electrical equipment and parts.

The stock traded at $172.89 per share at close on Sept. 9 for a price-sales ratio of 1.94, which is more compelling than the S&P 500's price-sales ratio of 3.22.

Acuity Brands Inc has a GuruFocus profitability rating of 8 out of 10, driven by a return on capital (ROC) ratio of 62.47%. The company has received a GuruFocus financial strength rating of 7 out of 10, driven by a high Altman Z-Score of 5.1.

Thanks to a 66.83% rise over the past year, the stock has a market capitalization of $6.23 billion and a 52-week range of $87.90 to $194.59.

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Wall Street sell-side analysts recommend a median rating of overweight for this stock and have established an average target price of $195.86 per share.

Regal Beloit Corp

The second stock value investors could be interested in is Regal Beloit Corp. (RBC, Financial), a Beloit, Wisconsin-based manufacturer and seller of electric engines and power generation and transmission products.

The stock traded at $148.80 per share at close on Sept. 9 for a price-sales ratio of 1.88, which is more compelling than the S&P 500's price-sales ratio of 3.22.

Regal Beloit Corp has a GuruFocus profitability rating of 7 out of 10, which is driven by a return on capital (ROC) ratio of 28.58%. The company has received a GuruFocus financial strength rating of 6 out of 10, which is driven by a good Altman Z-Score of 3.6 and a Piotroski F-Score of 7 out of 9.

Due to a 52.83% jump over the past year, the stock now has a market capitalization of $6.03 billion and a 52-week range of $91.82 to $159.64.

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Wall Street sell-side analysts recommend a median rating of buy for this stock and have established an average target price of $189.50 per share.

Ollie's Bargain Outlet Holdings, Inc

The third stock value investors could be interested in is Ollie's Bargain Outlet Holdings, Inc. (OLLI, Financial), a Harrisburg, Pennsylvania-based operator of 388 retail stores across the eastern half of the United States where consumers can purchase many goods. These include housewares, bed and bath, food, clothing, sporting goods, floor coverings, health and beauty aids, garden products, books and stationery, toys, pet care, lawn care and electronics.

Shares traded at $73.21 apiece on Sept. 9 for a price-sales ratio of 2.62, which is more compelling than the S&P 500's price-sales ratio of 3.22.

Ollie's Bargain Outlet Holdings, Inc. has a GuruFocus profitability rating of 8 out of 10, which is driven by a return on capital (ROC) ratio of 37.04%. The company has a GuruFocus financial strength rating of 6 out of 10, driven by an Altman Z-Score of 6.65.

After a 19.71% decrease that took place over the past year, the stock has a market capitalization of $4.65 billion and a 52-week range of $65.32 to $123.52.

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Wall Street sell-side analysts recommend a median rating of overweight for this stock and have established an average target price of $84.93 per share.

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