5 Low Price-to-Sales Stocks Positioned for Strong Growth in 2026

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 growth companies [1][2] 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 because sales are harder to manipulate than earnings [7] 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] - Companies with low P/S ratios and improving fundamentals are highlighted as having discounted valuations [10] Screening Parameters - Stocks should have a P/S ratio less than the median for their industry, a P/E ratio below the industry median, and a debt-to-equity ratio lower than the industry median [9][11] - Stocks must trade at a minimum price of $5 and have a Zacks Rank of 1 (Strong Buy) or 2 (Buy) to qualify for investment consideration [12] Company Profiles - Hamilton Insurance Group, Ltd. (HG): A specialty insurance and reinsurance company benefiting from strong execution and a clear growth roadmap, with gross premiums written rising significantly [12][13] - Macy's Inc. (M): Undergoing a transformation with its Bold New Chapter program, focusing on digital initiatives and omnichannel retailing, currently holding a Value Score of A and Zacks Rank 2 [14][15] - GIII Apparel Group (GIII): A designer and distributor of apparel focusing on product differentiation and international expansion, with owned brands generating higher margins [16][17] - Green Dot (GDOT): A pro-consumer bank holding company with a strong position in prepaid cards and Banking-as-a-Service, expanding its addressable market with low debt and significant cash reserves [18][20] - PRA Group (PRAA): A global financial services company focusing on non-performing loans, benefiting from strategic acquisitions and a positive purchasing environment [21][22]