5 Low Price-to-Sales Stocks to Replenish Your Portfolio

Core Insights - The price-to-sales (P/S) ratio is highlighted as a valuable metric for evaluating stocks, especially for companies with negative earnings or those in early development stages [2][3] - A P/S ratio below 1 indicates a potentially undervalued stock, making it an attractive investment opportunity [2] - The P/S ratio is considered more reliable than the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [3] Investment Opportunities - Lakeland Industries (LAKE) is recognized for its protective clothing manufacturing, focusing on high-value products and market diversification, with a Value Score of A and Zacks Rank 1 [6] - PBF Energy Inc. (PBF) operates six refineries and is noted for its capacity to produce high-quality refined products, holding a Zacks Rank 2 and a Value Score of A [7] - PagSeguro Digital (PAGS) provides financial technology solutions and has shown disciplined capital allocation, achieving a Value Score of A and Zacks Rank 2 [8] - Barrett Business Services (BBSI) offers business management solutions and is experiencing growth through an expanding client base, with a Value Score of A and Zacks Rank 2 [8] - JAKKS Pacific (JAKK) has diversified its product offerings and is focusing on online sales, achieving a Value Score of A and Zacks Rank 1 [9] 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 price-to-book ratio lower than the industry median [4] - Companies should also have a debt-to-equity ratio below the industry median and a current price of at least $5, with a Zacks Rank of 1 or 2 to ensure strong performance [4]