5 Price-to-Sales Stocks Positioned to Benefit From Market Shifts

Core 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 [1][2][3] 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 [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is preferred over the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [7] Investment Opportunities - Companies like Oshkosh Corporation (OSK), EPAM Systems, Inc. (EPAM), Green Dot (GDOT), The Mosaic Company (MOS), and PagSeguro Digital (PAGS) have low P/S ratios and strong growth drivers, making them attractive for investors [4][10] - Each of these companies combines low P/S ratios with strong fundamentals such as innovation, cost control, or digital expansion [10] Company Profiles - Oshkosh Corporation (OSK): Engaged in designing and manufacturing custom-built vehicles, with a focus on electrification and strategic acquisitions to enhance its market presence. Currently holds a Value Score of B and Zacks Rank 1 [12][13] - EPAM Systems, Inc. (EPAM): Provides software engineering and IT consulting services, benefiting from digital transformation and strategic acquisitions. Holds a Value Score of B and Zacks Rank 2 [14][15] - Green Dot (GDOT): A leader in prepaid cards and Banking-as-a-Service, with a strong balance sheet and significant cash reserves. Holds a Value Score of A and Zacks Rank 1 [16][17] - The Mosaic Company (MOS): A major producer of phosphate and potash, benefiting from strong demand in agriculture and cost transformation efforts. Holds a Value Score of A and Zacks Rank 2 [18][20] - PagSeguro Digital (PAGS): Offers a suite of financial solutions in Brazil, focusing on digital banking and sustainable growth. Holds a Value Score of A and Zacks Rank 2 [21][22]