A Trio of Low Price-Sales Ratio Stocks

Value investors may find these businesses attractive

Summary
  • CryoLife Inc, VSE Corp and Archrock Inc have low price-sales ratios and good profitability
  • These characteristics could make these stocks attractive to value investors
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Value investors may find the following stocks to be attractive opportunities, as they have low price-sales ratios compared to the S&P 500 and good profitability.

CryoLife Inc

The first stock value investors could be interested in is CryoLife Inc (CRY, Financial), a Kennesaw, Georgia-based manufacturer of medical devices and implantable human tissues for cardiac, vascular, thoracic and general surgery purposes worldwide.

The stock traded at $19.55 per share at close on Nov. 16 for a price-sales ratio of 2.73, which is more compelling than the S&P 500's price-sales ratio of 3.21.

CryoLife has a GuruFocus profitability rating of 6 out of 10, driven by a return on capital (ROC) ratio of 9.82% versus an industry median of 1.91.

After a 2.6% drop over the past year, the stock has a market capitalization of $768.89 million and a 52-week range of $19.27 to $32.34.

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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 $33.44 per share.

VSE Corp

The second stock value investors could be interested in is VSE Corp. (VSEC, Financial), an Alexandria, Virginia-based diversified services and supply company for the aerospace and defense industry.

The stock traded at $61.22 per share at close on Nov. 16 for a price-sales ratio of 1.08, which is more compelling than the S&P 500's price-sales ratio of 3.21.

VSE Corp has a GuruFocus profitability rating of 6 out of 10, which is driven by an operating margin of 3.29%, ranking better than 112 out of a total of 257 companies that operate in the aerospace and defense industry.

Following an 85.23% increase over the past year, the stock now has a market capitalization of $778.22 million and a 52-week range of $32.47 to $65.42.

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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 $67 per share.

Archrock Inc

The third stock value investors could be interested in is Archrock Inc. (AROC, Financial), a Houston-based oil and gas infrastructure provider.

Shares traded at $8.16 apiece on Nov. 16 for a price-sales ratio of 1.58, which is more compelling than the S&P 500's price-sales ratio of 3.21.

Archrock has a GuruFocus profitability rating of 5 out of 10, which is driven by an operating margin of 18.18%, ranking better than 73.5% of companies that operate in the oil and gas industry.

After a 6.67% increase that occurred over the past year, the stock has a market capitalization of $1.26 billion and a 52-week range of $7.09 to $10.80.

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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 $10.75 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