5 Low Price-to-Sales Stocks to Make a Profitable 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, as investors pay less than a dollar for each dollar of revenue generated [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 focus on high-value protective clothing and has a Value Score of A with a Zacks Rank of 1, indicating strong potential for returns [6] - ODP Corporation (ODP) is enhancing its business through Project CORE and has a Value Score of A with a Zacks Rank of 2, suggesting a solid investment opportunity [7] - ProPetro Holding Corp. (PUMP) is positioned to benefit from its operations in the Permian Basin and has a Value Score of A with a Zacks Rank of 2, indicating growth potential [8] - Barrett Business Services (BBSI) is experiencing strong earnings growth and has a Value Score of A with a Zacks Rank of 2, making it a favorable investment [9] - JAKKS Pacific (JAKK) has diversified its product offerings and has a Value Score of A with a Zacks Rank of 1, reflecting its strong market position [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 price-to-book ratio lower than the industry median to ensure value [4] - A debt-to-equity ratio lower than the industry median is preferred, as lower debt levels contribute to a stable P/S ratio [4] - Stocks must be trading at a minimum price of $5 and have a Zacks Rank of 1 or 2 to qualify for investment consideration [4][5]