Cognizant(US:CTSH) ZACKSยท2025-07-10 12:31Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage companies [2][3][4] Valuation Metrics - The P/S ratio compares a company's market capitalization to its revenues, providing a clearer picture of value when earnings are minimal or volatile [3][6] - A P/S ratio below 1 indicates that investors are paying less than $1 for each $1 of revenue, marking a potential bargain [7][11] - The P/S ratio is preferred over the price-to-earnings (P/E) ratio as sales are harder to manipulate than earnings, making it a more reliable metric [8][9] Screening Parameters - Companies with low P/S ratios and strong fundamentals are highlighted as potential investment opportunities [11] - Additional screening parameters include P/E ratio, price-to-book ratio, and debt-to-equity ratio, ensuring a comprehensive evaluation of a stock's value [12] Company Highlights - Hamilton Insurance Group, Ltd. (HG): Specializes in insurance and reinsurance, benefiting from strong execution and a clear growth roadmap, with gross premiums written rising significantly [13][14] - The Greenbrier Companies, Inc. (GBX): A leading supplier in freight transportation markets, with a strong product lineup and revenue visibility, currently holding a Value Score of A and Zacks Rank 1 [15][16] - Signet Jewelers (SIG): A major retailer of diamond jewelry, demonstrating strength in key segments and improving operational efficiency through strategic restructuring [17][18] - Cognizant Technology Solutions (CTSH): A professional services company experiencing robust organic growth, particularly in Health Sciences and Financial Services, bolstered by acquisitions and AI initiatives [19][20] - PagSeguro Digital (PAGS): Offers a suite of financial solutions in Brazil, focusing on innovation and sustainable growth, currently holding a Value Score of A and Zacks Rank 2 [21][22]