5 Low Price-to-Sales Stocks to Add Value to Your Portfolio

Core Concept - The price-to-sales ratio is a preferred metric over price-to-earnings as it is less susceptible to manipulation, providing a more reliable measure of a company's value [2][9]. Screening Parameters - Companies with a debt-to-equity ratio below the industry median are likely to maintain a stable price-to-sales ratio [4]. - Stocks with a price-to-sales ratio lower than the industry median are considered more attractive investments [20][17]. - A current stock price of at least $5 is a requirement for inclusion in the screening [21]. Company Highlights - Caleres: Focuses on reducing debt, aiming to keep borrowings under $100 million by 2026, currently holds a Value Score of A and Zacks Rank 2 [5][31]. - MRC Global: Benefits from increased energy transition activities and diverse market presence, currently has a Zacks Rank 2 and a Value Score of A [6][32]. - G-III Apparel: Committed to brand building and digital growth, holds a Value Score of A and Zacks Rank 1, indicating strong potential for growth [13][22]. - KB Home: Engages in aggressive land acquisition and development, optimistic about boosting gross margin and returns, currently has a Value Score of A and Zacks Rank 2 [14][23]. - Greenbrier: A leading supplier in freight transportation markets, leveraging strong market relationships and product offerings for ongoing success, currently has a Value Score of A and Zacks Rank 2 [24][28]. Investment Insights - A stock with a lower price-to-sales ratio is generally seen as a more suitable investment compared to those with a higher ratio [17]. - The price-to-sales ratio can reveal hidden strengths in loss-making companies, indicating potential recovery or growth [18][26]. - Companies with high debt and low price-to-sales ratios are less favorable due to the risks associated with debt repayment [19].