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

These stocks could be bargain opportunities

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Dec 09, 2021
Summary
  • Laboratory Corp of America Holdings, Orange SA and Fortis 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 1.71 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 three 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 1.71 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.

Laboratory Corp of America Holdings

The first stock investors may want to consider is Laboratory Corp of America Holdings (

LH, Financial), a Burlington, North Carolina-based independent clinical laboratory company.

Currently, Laboratory Corp of America Holdings’ price-to-median-price-sales value is about 1.11, which ranks higher than half of 78 companies that operate in the medical diagnostics and research industry.

The company's revenue per share for the trailing 12 months ended in September 2021 was $168.87. Laboratory Corp of America Holdings has a 10-year median price-sales ratio of 1.58. Thus, the median price-sales value was $266.77 in early trading on Dec. 9.

The stock price was $296.83 per share in early trading on Dec. 9 for a market capitalization of $28.41 billion and a 52-week range of $199.69 to $309.60.

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Laboratory Corp of America Holdings does not pay dividends.

GuruFocus assigned a score of 5 out of 10 to the company's financial strength and 9 out of 10 to its profitability.

Wall Street recommends a median rating of buy with an average target price of $345.83 per share for the stock.

Orange SA

The second stock investors may want to consider is Orange SA (

ORAN, Financial), a French telecommunications operator serving consumers, businesses, organizations and institutions in Europe, Africa and the Middle East.

Currently, Orange SA's price-to-median-price-sales value is about 0.66, which ranks higher than 86.50% of 200 companies that operate in the telecommunication services industry.

The revenue per share for the trailing 12 months ended in June 2021 was $19.16. Orange SA has a 10-year median price-sales ratio of 0.81 Thus, its median price-sales value was $15.61 in early trading on Dec. 9.

The stock price was $10.36 per share in early trading on Dec. 9 for a market capitalization of $27.55 billion and a 52-week range of $10.28 to $13.09.

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Orange SA pays semi-annual dividends currently. On Dec. 30, the company will distribute $0.338 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 overweight for the stock with an average target price of $14.05 per share.

Fortis Inc

The third stock investors may want to consider is Fortis Inc (

FTS, Financial), a Canadian generator and supplier of regulated electricity and gas in North America and the Caribbean.

Currently, Fortis Inc's price-to-median-price-sales value is about 1.57, which ranks better than 70 out of 339 companies that operate in the utilities-regulated industry.

The revenue per share for the trailing 12 months ended in September 2021 was $15.61. Fortis Inc has a 10-year median price-sales ratio of 1.85. Thus, its median price-sales value was $28.96 in early trading on Dec. 9.

The stock price was $45.49 per share in early trading on Dec. 9 for a market capitalization of $21.23 billion and a 52-week range of $38.49 to $47.02.

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Currently, Fortis Inc pays quarterly dividends. On March 1, the company will issue 0.535 Canadian dollars ($0.423) per 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 hold with an average target price of about $46.61 per share for the stock.

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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
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