4 Low Price-Sales Ratio Stocks

Value investors may find these businesses attractive

Summary
  • ConocoPhillips, Anthem Inc, The TJX Companies Inc. and ABB Ltd. have low price-sales ratios and good profitability ratings.
  • 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 lower price-sales ratios compared to the S&P 500 and good profitability ratings from GuruFocus.

ConocoPhillips

The first stock that investors may be interested in is ConocoPhillips (COP, Financial), a Houston, Texas-based energy company that produces the oil and gas from unconventional deposits in North America and from conventional deposits in North America, Europe and Australasia. ConocoPhillips also operates numerous liquefied natural gas facilities and conducts mining activities at oil sands facilities in Canada.

The stock traded at $97.41 per share at close on March 3 for a price-sales ratio of 2.82, which is more compelling than the S&P 500's price-sales ratio of 2.89.

ConocoPhillips has a GuruFocus profitability rating of 7 out of 10, driven by a return on capital (ROC) ratio of 25.05% versus an industry median of 4.76%.

After rising 67% over the past year, the stock has a market cap of $126.59 billion and a 52-week range of $47.85 to $99.97.

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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 $106.37 per share.

Anthem Inc.

The second stock value investors could be interested in is Anthem Inc. (ANTM, Financial), an Indianapolis, Indiana-based health care plans company.

The stock traded at $469.02 per share at close on March 3 for a price-sales ratio of 0.83, which is more compelling than the S&P 500's price-sales ratio of 2.89.

Anthem Inc. has a GuruFocus profitability rating of 9 out of 10, which is driven by a return on equity (ROE) ratio of 17.56% versus an industry median of 7.2%.

After gaining 40.6% over the past year, the stock now has a market cap of $113.18 billion and a 52-week range of $315.11 to $472.01.

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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 $496.67 per share.

The TJX Companies Inc.

The third stock value investors could be interested in is The TJX Companies Inc. (TJX, Financial), a Framingham, Massachusetts-based operator of 3,305 off-price apparel and home fashions stores in the U.S., 525 in Canada, 78 in Europe and 62 in Australia. The company also owns and operates websites for e-commerce.

Shares traded at $65.71 apiece on March 3 for a price-sales ratio of 1.65, which is more compelling than the S&P 500's price-sales ratio of 2.89.

The TJX Companies Inc. has a GuruFocus profitability rating of 8 out of 10, which is driven by a return on equity (ROE) ratio of 53.25% versus an industry median of 6.77%.

After a 4.77% gain over the past year, the stock has a market cap of $78.38 billion and a 52-week range of $59.85 to $77.35.

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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 $81.09 per share.

ABB Ltd

The fourth stock value investors could be interested in is ABB Ltd. (ABB, Financial), a Swiss manufacturer of electrification products and industrial solutions to utilities, industrial, transportation companies and other clients operating in the infrastructure industry.

Shares traded at $33.08 apiece on March 3 for a price-sales ratio of 2.31, which is more compelling than the S&P 500's price-sales ratio of 2.89.

ABB Ltd. has a GuruFocus profitability rating of 7 out of 10, driven by a return on capital (ROC) ratio of 119.55% versus an industry median of 13.62%.

After climbing nearly 11.4% over the past year, the stock has a market cap of $64.65 billion and a 52-week range of $28.66 to $39.11.

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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 $38.07 per share.

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