4 Low Price-Sales Ratio Stocks

These stocks could be value opportunities

Summary
  • Petroleo Brasileiro SA Petrobras, Vale SA, Ecopetrol SA and D.R. Horton Inc. have low price-sales ratios and good profitability ratings.
  • These characteristics could make these stocks attractive to value investors.
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Value investors may find the following stocks to be potential value opportunities, as they have lower price-sales ratios compared to the S&P 500 and good profitability ratings from GuruFocus.

Petroleo Brasileiro SA Petrobras

The first stock that investors may be interested in is Petroleo Brasileiro SA Petrobras (PBR, Financial), a Brazil-based integrated oil and gas operator.

The stock traded at $14.71 per share at close on April 14 for a price-sales ratio of 1.14, which is more compelling than the S&P 500’s price-sales ratio of 2.80.

Petroleo Brasileiro SA Petrobras has a GuruFocus profitability rating of 8 out of 10, driven by a return on capital (ROC) ratio of 26.39% versus an industry median of 5.79%.

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After rising 72.25% over the past year, the stock has a market cap of $92.43 billion and a 52-week range of $7.91 to $16.09.

Wall Street sell-side analysts recommend a median rating of overweight for this stock and have established an average target price of $15.08 per share.

Vale SA

The second stock value investors could be interested in is Vale SA (VALE, Financial), a Brazilian producer and seller of various mining products such as iron, nickel and coal.

The stock traded at $19.48 per share at close on April 14 for a price-sales ratio of 1.80, which is more compelling than the S&P 500’s price-sales ratio of 2.80.

Vale SA has a GuruFocus profitability rating of 9 out of 10, which is driven by a return on equity (ROE) ratio of 62.2% versus an industry median of -14.39%.

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The share price is almost unchanged year over year for a market cap of about $95.06 billion and a 52-week range of $11.16 to $23.17.

Wall Street sell-side analysts recommend a median rating of overweight for this stock and have established an average target price of $21.80 per share.

Ecopetrol SA

The third stock value investors could be interested in is Ecopetrol SA (EC, Financial), a Colombian integrated oil and gas operator.

Shares traded at $19.65 apiece on April 14 for a price-sales ratio of 1.66, which is more compelling than the S&P 500’s price-sales ratio of 2.80.

Ecopetrol SA has a GuruFocus profitability rating of 10 out of 10, which is driven by an operating margin ratio of 32.27% versus an industry median of 5.35%.

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After a 52.56% increase over the past year, the stock has a market cap of $40.40 billion and a 52-week range of $11.52 to $19.66.

Wall Street sell-side analysts recommend a median rating of hold for this stock and have established an average target price of approximately $18 per share.

D.R. Horton Inc.

The fourth stock value investors could be interested in is D.R. Horton Inc. (DHI, Financial), an Arlington, Texas-based residential construction company.

Shares traded at $72.51 apiece on April 14 for a price-sales ratio of 0.91, which is more compelling than the S&P 500’s price-sales ratio of 2.80.

D.R. Horton Inc. has a GuruFocus profitability rating of 9 out of 10, driven by a three-year EPS without NRI growth rate of 44.1% versus an industry median of 5.95%.

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After falling 24.25% over the past year, the stock has a market cap of $25.69 billion and a 52-week range of $68.79 to $110.45.

Wall Street sell-side analysts recommend a median rating of overweight for this stock and have established an average target price of $112.56 per share.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure