5 Low Price-to-Sales Ratio Stocks Offering Attractive Entry Points

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][10] Investment Opportunities - Low P/S stocks can offer compelling opportunities, often trading below their intrinsic value, making them attractive for investors seeking upside potential [3][10] - Companies with low P/S ratios identified as potential investment opportunities include: - Macy's Inc. (M) [4][12] - Oshkosh Corporation (OSK) [4][14] - Green Dot (GDOT) [4][16] - The Mosaic Company (MOS) [4][18] - PagSeguro Digital (PAGS) [4][20] Company Profiles - Macy's Inc. (M): Undergoing a transformation with its Bold New Chapter program, focusing on digital initiatives and omnichannel retailing, currently has a Value Score of A and Zacks Rank 1 [12][13] - Oshkosh Corporation (OSK): Engaged in custom-built vehicles and equipment, focusing on electrification and innovation, currently has 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 strong partnerships and a solid balance sheet, currently has 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 and cost transformation efforts, currently has a Value Score of A and Zacks Rank 2 [18][19] - PagSeguro Digital (PAGS): Offers a suite of financial solutions in Brazil, focusing on digital banking and innovation, currently has a Value Score of B and Zacks Rank 1 [20][21]