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4 Low Price-to-Median-Price-Sales Value Stocks

These stocks could be bargain opportunities

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Oct 01, 2021
Summary
  • Brown-Forman Corp, Nokia Oyj, McKesson Corp and Suncor Energy Inc have low price-to-median-price-sales values when compared to the historical average of the S&P 500
  • The price-to-median-price-sales value of the benchmark index for the US market stands at around 1.66 as of the writing of this article
  • The price-to-median-price-sales value is based on the idea that the stock valuation will revert to its historical (10-year) average in terms of the price-sales ratio
  • Wall Street recommends positive ratings for these stocks
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When screening the market for bargains, investors may want to consider the following four companies, as their stocks have low price-to-median-price-sales values when compared to the average of the S&P 500 (which stands at around 1.66 as of the writing of this article).

This approach is based on the idea that the stock valuation will revert to its historical (10-year) average in terms of the price-sales ratio. It requires investors to divide the current share price by the trailing 12-month revenue per share times the 10-year median price-sales ratio.

Wall Street sell-side analysts have also issued optimistic recommendation ratings for these stocks, meaning that they have expectations for higher share prices over the months ahead.

Brown-Forman Corp

The first stock investors may want to consider is Brown-Forman Corp (

BF.B, Financial), a Louisville, Kentucky-based manufacturer, trader and seller of alcoholic beverages.

Brown-Forman's price-to-median-price-sales value is 1.34 as of Sept. 30, which ranks higher than 48 out of 112 companies that operate in the beverages - alcoholic industry.

The company's revenue per share for the trailing 12 months ended in July 2021 was $7.51. Brown-Forman Corp has a 10-year median price-sales ratio of 6.6613. Thus, the median price-sales value is $50.08 as of Sept. 30.

The stock was trading at $67.01 per share at close on Thursday for a market capitalization of $31.35 billion and a 52-week range of $67 to $82.24.

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Brown-Forman Corp pays quarterly dividends currently. On Oct. 1, the company will pay a dividend of 18 cents per share.

GuruFocus assigned a score of 5 out of 10 to the company's financial strength and 7 out of 10 to its profitability.

Wall Street recommends a median rating of hold with an average target price of $72.85 per share for the stock.

Nokia Oyj

The second stock investors may want to consider is Nokia Oyj (

NOK, Financial), an Espoo, Finland-based telecommunications equipment, information technology and consumer electronics company operating globally.

Nokia Oyj's price-to-median-price-sales value is 1.02 as of Sept. 30, which ranks higher than 921 out of 1,417 companies that operate in the hardware industry.

The revenue per share for the trailing 12 months ended in June 2021 was $4.71. Nokia Oyj has a 10-year median price-sales ratio of 1.1361. Thus, its median price-sales value is $5.36 as of Sept. 30.

The stock was trading at $5.45 per share at close on Thursday for a market capitalization of $30.68 billion and a 52-week range of $3.21 to $9.79.

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Currently, Nokia Oyj is not paying dividends.

GuruFocus assigned a score of 5 out of 10 to the company's financial strength and 4 out of 10 to its profitability.

Wall Street recommends a median rating of overweight for the stock with an average target price of $6.99 per share.

McKesson Corp

The third stock investors may want to consider is McKesson Corp (

MCK, Financial), an Irving, Texas-based supplier of medical treatments and equipment in the U.S. and internationally.

McKesson Corp's price-to-median-price-sales value is 0.74 as of Sept. 30, which ranks higher than 21 out of 37 companies that operate in the medical distribution industry.

The revenue per share for the trailing 12 months ended in June 2021 was $1,534.37.

McKesson Corp has a 10-year median price-sales ratio of about 0.1747. Therefore, the median price-sales value is $268.06 as of Sept. 30.

The stock was trading at $199.38 per share on Thursday for a market capitalization of $30.84 billion and a 52-week range of $141.32 to $210.

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Currently, McKesson Corp pays dividends. On Oct. 1, the company will distribute a quarterly dividend of 47 cents per common share.

GuruFocus assigned a score of 5 out of 10 to the company's financial strength and 6 out of 10 to its profitability.

Wall Street recommends a median rating of overweight with an average target price of $240.38 per share for the stock.

Suncor Energy Inc

The third stock investors may want to consider is Suncor Energy Inc (

SU, Financial), a Canadian petroleum and gas integrated operator with mineral activities in the U.S. and internationally.

Suncor Energy Inc's price-to-median-price-sales value is 0.83 as of Sept. 30, which ranks higher than 302 out of 520 companies that operate in the oil and gas industry.

The revenue per share for the trailing 12 months ended in June 2021 was $16.09.

Suncor Energy Inc has a 10-year median price-sales ratio of about 1.5521. Therefore, the median price-sales value is $24.98 as of Sept. 30.

The stock price was trading at $20.74 per share on Thursday for a market capitalization of $30.56 billion and a 52-week range of $10.67 to $25.73.

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Currently, Suncor Energy Inc pays dividends. On Sept. 24, the company paid a quarterly dividend of 0.21 Canadian dollars ($0.17) per common share.

GuruFocus assigned a score of 3 out of 10 to the company's financial strength and 6 out of 10 to its profitability.

Wall Street recommends a median rating of overweight with an average target price of $28.76 per share for the stock.

Disclosure: I have no position in any securities mentioned.

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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
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