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

These stocks could be bargain opportunities

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Nov 03, 2021
Summary
  • Alexandria Real Estate Equities Inc, Valero Energy Corp, Ecopetrol SA and Lennar Corp 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 1.68 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 looking 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 1.68 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.

Alexandria Real Estate Equities Inc

The first stock investors may want to consider is Alexandria Real Estate Equities Inc (

ARE, Financial), a Pasadena, California-based real estate investment trust firm focusing on leasing space to the life science and technology industries. The company holds approximately 36.7 million rentable square feet of operating properties and 21.4 million rentable square feet across Class A properties undergoing construction, near- and mid-term (re)development projects and future development projects.

Currently, Alexandria Real Estate Equities Inc's price-to-median-price-sales value is about 1.56, which ranks higher than 124 out of 197 companies that operate in the REITs industry.

The company's revenue per share for the trailing 12 months ended in September 2021 was $14.05. Alexandria Real Estate Equities Inc has a 10-year median price-sales ratio of 9.39. Thus, the median price-sales value was $132.08 in early trading on Nov. 3.

The stock price was $206.20 per share in early trading on Nov. 3 for a market capitalization of $32 billion and a 52-week range of $153.62 to $211.70.

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Alexandria Real Estate Equities Inc pays quarterly dividends currently. On Oct. 15, the company distributed $1.12 per share.

GuruFocus assigned a score of 4 out of 10 to the company's financial strength and 6 out of 10 to its profitability.

Wall Street recommends a median rating of buy with an average target price of $225.77 per share for the stock.

Valero Energy Corp

The second stock investors may want to consider is Valero Energy Corp (

VLO, Financial), a San Antonio, Texas-based independent oil and ethanol operator with production and refinery plants in North America, the UK, Ireland and several other geographic regions.

Currently, Valero Energy Corp's price-to-median-price-sales value is about 1.10, which ranks higher than 76 out of 420 companies that operate in the Oil & Gas industry.

The revenue per share for the trailing 12 months ended in September 2021 was $232.44. Valero Energy Corp has a 10-year median price-sales ratio of 0.29. Thus, its median price-sales value was $69.25 in early trading on Nov. 3.

The stock price was $76.90 per share in early trading on Nov. 3 for a market capitalization of $31.41 billion and a 52-week range of $37.88 to $84.95.

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Valero Energy Corp pays quarterly dividends currently. On Dec. 9, the company will distribute $0.98 per 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 buy for the stock with an average target price of $89.88 per share.

Ecopetrol SA

The third stock investors may want to consider is Ecopetrol SA (

EC, Financial), a Colombian integrated oil and gas operator.

Currently, Ecopetrol SA's price-to-median-price-sales value is about 1.03, which ranks higher than 4 only out of 420 companies that operate in the oil and gas industry.

The revenue per share for the trailing 12 months ended in June 2021 was $8.46. Ecopetrol SA has a 10-year median price-sales ratio of 1.71. Thus, its median price-sales value was $14.54 in early trading on Nov. 3.

The stock price was $15 per share in early trading on Nov. 3 for a market capitalization of $30.88 billion and a 52-week range of $9.44 to $15.91.

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Currently, Ecopetrol SA pays annual dividends. On April 30, the company distributed $0.093 per share.

GuruFocus assigned a score of 4 out of 10 to the company's financial strength and 7 out of 10 to its profitability.

Wall Street recommends a median rating of overweight with an average target price of about $16 per share for the stock.

Lennar Corp

The fourth stock investors may want to consider is Lennar Corp (

LEN, Financial), a Miami, Florida-based homebuilder.

Currently, Lennar Corp's price-to-median-price-sales value is about 1.06, which ranks higher than 15 out of 32 companies that operate in the homebuilding and construction industry.

The revenue per share for the trailing 12 months ended in August 2021 was $82.71. Lennar Corp has a 10-year median price-sales ratio of 1.16. Thus, its median price-sales value was $96.66 in early trading on Nov. 3.

The stock price was $102.80 per share in early trading on Nov. 3 for a market capitalization of $31.15 billion and a 52-week range of $69.69 to $110.61.

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Currently, Lennar Corp pays quarterly dividends. On Oct. 28, the company distributed $0.25 per common share.

GuruFocus assigned a score of 6 out of 10 to the company's financial strength and 8 out of 10 to its profitability.

Wall Street recommends a median rating of overweight with an average target price of $120.38 per share for the stock.

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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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