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3 Low Price-Sales Ratio Stock Picks

Value investors may want to consider these businesses

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Alberto Abaterusso
Oct 13, 2021

Summary

  • Stericycle Inc, Callaway Golf Co and American Eagle Outfitters Inc have low price-sales ratios and good profitability
  • These characteristics could make these stocks attractive to value investors
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In my opinion, value investors may want to consider the following stocks, as they have low price-sales ratios compared to the S&P 500 and good profitability.

Stericycle Inc

The first stock value investors could be interested in is Stericycle Inc (

SRCL, Financial), a Bannockburn, Illinois-based provider of various regulated waste and compliance service solutions in the U.S. and internationally.

The stock traded at $67.49 per share at close on Oct. 12 for a price-sales ratio of 2.37, which is more compelling than the S&P 500's price-sales ratio of 3.12.

Stericycle Inc has a GuruFocus profitability rating of 6 out of 10, driven by a return on capital (ROC) ratio of 13.67%. The company has received a GuruFocus financial strength rating of 4 out of 10, driven by a Piotroski F-Score of 7 out of 9.

After a 3.2% rise over the past year, the stock has a market capitalization of $6.21 billion and a 52-week range of $61.62 to $79.97.

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Wall Street sell-side analysts recommend a median rating of hold for this stock and have established an average target price of $78.86 per share.

Callaway Golf Co

The second stock value investors could be interested in is Callaway Golf Co (

ELY, Financial), a Carlsbad, California-based designer, manufacturer and seller of golf clubs, balls, apparel and other products.

The stock traded at $27.43 per share at close on Oct. 12 for a price-sales ratio of 1.45, which is more compelling than the S&P 500's price-sales ratio of 3.12.

Callaway Golf has a GuruFocus profitability rating of 6 out of 10, which is driven by a return on capital (ROC) ratio of 35.02% and a three-year revenue growth rate of 15.8%. The company has received a GuruFocus financial strength rating of 4 out of 10, which is driven by an equity-to-asset ratio of 0.51 and a Piotroski F-Score of 5 out of 9.

Following a 37% increase over the past year, the stock now has a market capitalization of $5.07 billion and a 52-week range of $14.62 to $37.75.

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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 $40 per share.

American Eagle Outfitters Inc

The third stock value investors could be interested in is American Eagle Outfitters Inc (

AEO, Financial), a Pittsburgh, Pennsylvania-based operator of its namesake American Eagle stores as well as Aerie brand stand-alone stores and Todd Snyder stores in North America, Mexico and Hong Kong.

Shares traded at $24.41 apiece on Oct. 12 for a price-sales ratio of 1, which is more compelling than the S&P 500's price-sales ratio of 3.12.

American Eagle Outfitters Inc has a GuruFocus profitability rating of 7 out of 10, which is driven by a return on equity (ROE) ratio of 24.86%. The company has a GuruFocus financial strength rating of 5 out of 10, driven by an Altman Z-Score of 3.9 and a Piotroski F-Score of 8 out of 9.

After a 62.64% jump that took place over the past year, the stock has a market capitalization of $4.11 billion and a 52-week range of $13.36 to $38.99.

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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 $40.18 per share.

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

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Disclosures

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
The views of this author are solely their own opinion and are not endorsed or guaranteed by GuruFocus.com
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