4 Low Price-Sales Ratio Stocks

These companies could be value opportunities

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Sep 22, 2022
Summary
  • Carnival, Itau Unibanco, Opendoor Technologies and Southwestern Energy have price-sales ratios that look more attractive than the S&P 500.
  • Wall Street is also positive about these companies.
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Value investors may consider the following stocks as potential value opportunities given their lower price-sales ratios relative to the S&P 500, while sell-side analysts on Wall Street have issued positive recommendation ratings.

Carnival

The first stock investors may be interested in is Carnival Corp. (

CCL, Financial), a Miami, Florida-based travel company that operates 87 cruise ships with 223,000 berths in North America and overseas.

The stock closed at $9.71 per share on Sept. 21 for a price-sales ratio of 1.88, which is more compelling than the S&P 500’s price-sales ratio of 2.34.

For the trailing 12 months through the most recent fiscal quarter ended May 30, total revenue was $5.86 billion, more than a 40-fold year-over-year increase from $141 million, which was affected by travel restrictions and other factors to limit the spread of the Covid-19 virus.

After falling 60.67% over the past year, the stock has a market cap of $12.45 billion and a 52-week range of $8.10 to $27.39.

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Wall Street sell-side analysts issued a median recommendation rating of hold for the stock and have established an average target price of $12.48 per share.

Itau Unibanco

The second stock value investors could be interested in is Itau Unibanco Holding SA (

ITUB, Financial), a Brazilian regional bank.

The stock closed at $5.41 per share on Sept. 21 for a price-sales ratio of 1.79, which is more compelling than the index's ratio.

For the trailing 12 months through the June 2022 quarter, total revenue was $21.48 billion, down 2.5% year over year from $22.02 billion.

The decrease was mainly due to higher loan loss provisions as the crisis caused by the pandemic in recent years and the risk of an economic recession due to the continued aggressive stance of the U.S. Federal Reserve against record inflation. This led to a higher risk of insolvency among households and businesses, undermining the bank's financial strength.

The stock price is up 21.62% year over year with a market cap of approximately $52.92 billion and a 52-week range of $3.60 to $5.88.

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Wall Street sell-side analysts issued a median recommendation rating of overweight for the stock and have established an average target price of $5.95 per share.

Opendoor Technologies

The third stock value investors could be interested in is Opendoor Technologies Inc. (

OPEN, Financial), a Tempe, Arizona-based digital platform that allows consumers to buy and sell residential real estate online while providing title insurance and escrow services.

Shares closed at $3.25 on Sept. 21 for a price-sales ratio of 0.13, which is more compelling than the S&P 500’s ratio.

For the trailing 12 months through June, total revenue was $21.48 billion, an 8.5 times increase year over year from $2.52 billion.

Sales were helped by high selling prices in the housing market as the company was able to implement lavish transaction fees.

After falling 83.74% over the past year, the stock has a market cap of $2.04 billion and a 52-week range of $3.23 to $25.32.

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Wall Street sell-side analysts gave the stock a median recommendation rating of overweight and set an average price target of around $8.71 per share.

Southwestern Energy

The fourth stock value investors could be interested in is Southwestern Energy Co. (

SWN, Financial), a leading U.S. oil and natural gas company based in Spring, Texas, which produces and markets natural gas and natural gas liquids from large unconventional natural gas and oil fields in Pennsylvania, West Virginia, Ohio and Louisiana. The company owned approximately 768,050 net acres at the end of 2021 and produced fossil fuels from 1,527 wells on reserves of 21.150 trillion cubic feet of natural gas equivalent.

Shares closed at $7 on Sept. 21 for a price-sales ratio of 0.62, which is more compelling than the benchmark index's ratio.

For the trailing 12 months through June, total revenue was $11.63 billion, a 3.4 times increase year over year from $3.43 billion.

Sales were boosted by skyrocketing natural gas prices prompted by speculation in the spot price markets. Here, traders capitalized on fears over the steady flow of Russian gas through Ukraine after its invasion. In addition, the company's sales have benefited from rising European demand for U.S. natural gas liquids, as energy-hungry economies such as Germany and Italy strive to reduce Russian energy dependency as a punitive measure for its aggression in Ukraine.

After climbing 43.74% over the past year, the stock has a market cap of $7.80 billion and a 52-week range of $3.81 to $9.87.

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Wall Street sell-side analysts gave the stock a median recommendation rating of overweight and set an average price target of around $11.51 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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