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4 Stocks With Low Price-to-Median Price-Sales Values

These stocks could be bargain opportunities

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May 22, 2022
Summary
  • Bank Bradesco, Nokia, Ross Stores and PG&E have lower price-to-median price-sales values than the historical average of the S&P 500.
  • The price-to-median price-sales value of the benchmark index for the U.S. market stands at around 1.34.
  • The value is based on the idea the stock's valuation will revert to its historical average in terms of the price-sales ratio.
  • Wall Street issued positive recommendation ratings for these stocks.
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When looking for bargains, investors may want to consider the following companies because their price-to-median price-sales values are low compared to the average of the S&P 500 (which stands at around 1.34 as of the time of writing).

This approach is based on the idea the stock's 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 multiplied by the 10-year median price-sales ratio.

Wall Street sell-side analysts have also issued optimistic recommendation ratings for these stocks, meaning they expect higher share prices in the months ahead.

Bank Bradesco SA

The first stock investors may want to consider is Bank Bradesco SA (

BBD, Financial), a Brazilian provider of bank services to individuals and businesses in Brazil and internationally.

Currently, Bank Bradesco’s price-to-median price-sales value is about 0.77, which ranks better than 69.85% of the 826 companies that operate in the banking industry.

The company's revenue per share for the trailing 12 months ended in December 2021 was $1.69. Bank Bradesco has a 10-year median price-sales ratio of 3.05. Thus, the median price-sales value was 5.18 at close on May 20.

Shares were at $3.99 each at close on May 20 for a market capitalization of $44.58 billion and a 52-week range of $2.95 to $5.18.

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GuruFocus assigned a score of 3 out of 10 to the company's financial strength and 5 out of 10 to its profitability.

Wall Street issued a median recommendation rating of buy with an average target price of $5.25 per share for the stock.

Nokia

The second stock investors may want to consider is Nokia Oyj (

NOK, Financial), an Espoo, Finland-based telecommunications equipment, information technology and consumer electronics company operating globally.

Currently, Nokia’s price-to-median price-sales value is about 0.94, which ranks better than 57.52% of the 1,457 companies that operate in the hardware industry.

The revenue per share for the trailing 12 months ended March 30 was $4.54. Nokia has a 10-year median price-sales ratio of 1.13. Thus, its median price-sales value was $5.12 at close on May 20.

The stock was around $4.83 per share at close on May 20, for a market capitalization of $27.22 billion and a 52-week range of $4.51 to $6.40.

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GuruFocus assigned a score of 6 out of 10 to the company's financial strength and 5 out of 10 to its profitability.

Wall Street issued a median recommendation rating of overweight for the stock with an average target price of $6.63 per share.

Ross Stores

The third stock investors may want to consider is Ross Stores Inc. (

ROST, Financial), a California-based apparel company.

Currently, Ross Stores’ price-to-median price-sales value is about 0.68, which ranks better than 73.17% of the 574 companies that operate in the retail-cyclical industry.

The revenue per share for the trailing 12 months ended on Jan. 31 was $53.48. Ross Stores has a 10-year median price-sales ratio of 1.97. Thus, its median price-sales value was 105.64 at close on May 20.

The stock traded around $71.87 per share on May 20 for a market capitalization of $25.25 billion and a 52-week range of $69.75 to $127.58.

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GuruFocus assigned a score of 7 out of 10 to the company's financial strength and 9 out of 10 to its profitability.

Wall Street gave the stock a median recommendation rating of overweight with an average target price of about $94.13 per share.

PG&E

The fourth stock investors may want to consider is PG&E Corp. (

PCG, Financial), a San Francisco-based electricity and natural gas provider.

Currently, PG&E's price-to-median price-sales value is about 0.88, which ranks better than 60.11% of the 351 companies that operate in the utilities-regulated industry.

The revenue per share for the trailing 12 months ended on March 31 was $10.543. PG&E has a 10-year median price-sales ratio of 1.26. Thus, its median price-sales value was 13.27 at close on May 20.

The stock traded at around $11.74 per share on May 20 for a market capitalization of $23.33 billion and a 52-week range of $8.24 to $13.19.

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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 gave the stock a median recommendation rating of overweight with an average target price of about $16.46 per share.

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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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