Yahoo Finance Zacks.com featured highlights include Lakeland Industries, PBF Energy, Affiliated Managers, Barrett Business Services and JAKKS Pacific
For Immediate Release
Chicago, IL – April 26, 2024 – Stocks in this week’s article are Lakeland Industries LAKE, PBF Energy Inc. PBF, Affiliated Managers Group AMG, Barrett Business Services BBSI and JAKKS Pacific JAKK.
Pick These 5 Low Price-to-Sales Stocks to Stay Profitable
Investment in stocks after analyzing valuation metrics is considered one of the best practices. When considering valuation metrics, the price-to-earnings ratio has always been the obvious choice. This is because calculations based on earnings are easy and come in handy. However, the price-to-sales ratio is convenient for determining the value of stocks that are incurring losses or in an early development cycle, generating meager or no profit.
What's the Price-to-Sales Ratio?
While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, its price-to-sales can indicate the hidden strength of the business. This underrated ratio is also used to identify a recovery situation or ensure a company's growth is not overvalued.
A stock's price-to-sales ratio reflects how much investors pay for each dollar of revenue generated by a company.
If the price-to-sales ratio is 1, investors are paying $1 for every $1 of revenues generated by the company. A stock with a price-to-sales below 1 is a good bargain as investors need to pay less than a dollar for a dollar's worth.
Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.
The price-to-sales ratio is often preferred over price-to-earnings, as companies can manipulate their earnings using various accounting measures. However, sales are harder to manipulate and are relatively reliable.
However, one should keep in mind that a company with a high debt and a low price-to-sales ratio is not an ideal choice. The high debt level will have to be paid off at some point, leading to further share issuance, a rise in market cap, and, ultimately, a higher price-to-sales ratio.
In any case, the price-to-sales ratio used in isolation cannot do the trick. One should analyze other ratios like Price/Earnings, Price/Book and Debt/Equity before arriving at any investment decision.
Lakeland Industries, PBF Energy Inc., Affiliated Managers Group, Barrett Business Services and JAKKS Pacific are some companies with a low price-to-sales ratio and the potential to offer higher returns.
Here are five of the 18 stocks that qualified the screening:
Lakeland Industries operates as a leading global manufacturer of protective clothing for industry, healthcare and first responders on the federal, state and local levels. LAKE's focus on high-value products and market diversification, particularly in the fire service and industrial product lines, has been aiding its performance.
The company has been committed to its strategic acquisition pipeline and is focused on organic growth for the remainder of the fiscal year. LAKE has a Value Score of B and currently sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
PBF Energy is a leading refiner of crude. It operates with a diverse asset base consisting of six refineries. The company boasts a higher daily crude processing capacity than most peers. PBF's refineries play a crucial role in meeting global energy product demand and supporting various sectors, including transportation and manufacturing.
PBF stands out as one of the most complex refining systems in the United States, enabling the production of lighter and superior-grade refined products. PBF Energy's capacity to produce cleaner and more valuable refined products is a strategic advantage, allowing it to meet market demands for high-quality fuels and petrochemicals. This enhances its competitiveness and profitability in the refining industry. PBF currently has a Zacks Rank #2 and a Value Score of A.
Affiliated Managers is a global asset manager with equity investments in a large group of investment management firms or affiliates. The company has been well-poised for growth on the back of successful partnerships, its global distribution capability and a robust balance sheet. Its capital distributions seem sustainable. Diverse product offerings, a robust assets under management balance and global distribution capability are expected to continue driving AMG's top line.
AMG, with its strong balance sheet and liquidity position, has considerable capability to invest in other companies and generate meaningful growth through investments. A robust liquidity position is likely to support investments in alternatives, thereby generating solid earnings. Affiliated Managers currently carries a Zacks Rank #2 and has a Value Score of A.
Barrett provides business management solutions for small and mid-sized companies in the United States. The company has developed a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry.
The company has been gaining from an expanding client base and the ongoing rollout of BBSI Benefits. Additionally, Barrett has been witnessing positive results in its pricing and cost-management strategies, leading to strong, sustainable earnings growth. BBSI currently has a Value Score of A and a Zacks Rank #2.
Based in Malibu, CA, JAKKS Pacific is a multi-brand company that has been designing and marketing a broad range of toys and consumer products. The company is benefiting from the FOB business model, strategic acquisitions, a solid international footprint, a focus on innovation and collaborations with popular brands and movie franchisees. The emphasis on the expansion of retail reach bodes well.
JAKK has emerged as a diversified consumer products company, buoyed by a string of acquisitions over the past several years. The company realized the importance of online retailing and shifted its focus to boosting online sales. JAKK has a Value Score of A and currently flaunts a Zacks Rank #1.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2262176/pick-these-5-low-price-to-sales-stocks-to-stay-profitable
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JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report
Affiliated Managers Group, Inc. (AMG) : Free Stock Analysis Report
Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report
PBF Energy Inc. (PBF) : Free Stock Analysis Report
Lakeland Industries, Inc. (LAKE) : Free Stock Analysis Report
