The Price Sales Ratio, also known as the Price-to-sales ratio, P/S ratio, or PSR, is a metric used to value stocks based on the company's revenues, and used to compare companies within a sector and within an industry. It is calculated by dividing the price per share by the sales per share, or by dividing the market cap by the company's latest revenues. The lower the number, the better the buy.
The PS ratio was made popular by Ken Fisher, the founder, chairman, and CEO of Fisher Investments, a Forbes columnist, and author of 100 Minds That Made the Market and The Only Three Questions That Count: Investing by Knowing What Others Don't.
All of the following stocks have market caps above $800 million, PE ratios below 11, PEG's below 1, selling below book value, and yields above 2%.
Penske Automotive Group, Inc. (PAG) with a price sales ratio of 0.10 is a retailer of new and used motor vehicles. The stock has a PE of 9 , a PEG of 0.73 , and pays a yield of 2.7% .
Oshkosh Corporation (OSK) with a price sales ratio of 0.19 makes and sells specialty vehicles . The stock has a PE of 5 , a PEG of 0.26 , and pays a yield of 2.2% .
NACCO Industries, Inc. (NC) with a price sales ratio of 0.23 manufactures lift trucks, housewares, and is in the coal mining business. The stock has a PE of 10 , a PEG of 0.89 , and pays a yield of 2.0% .
Magna International Inc. (MGA) with a price sales ratio of 0.26 makes automotive systems, assemblies, components, and modules. The stock has a PE of 10 , a PEG of 0.74 , and pays a yield of 2.4% .
Deutsche Lufthansa AG (DLAKY) with a price sales ratio of 0.28 is the German airline. The stock has a PE of 6 , a PEG of 0.64 , and pays a yield of 8.4% .
AEGON N.V. (AEG) with a price sales ratio of 0.37 is one of the world's largest life insurance and pension groups. The stock has a PE of 7 , a PEG of 0.84 , and pays a yield of 8.6% .
Fresh Del Monte Produce Inc. (FDP) with a price sales ratio of 0.39 produces and distributes fresh and fresh-cut fruit and vegetables. The stock has a PE of 8 , a PEG of 0.89 , and pays a yield of 2.4% .
Gruma S.A.B. de C.V. (GMK) with a price sales ratio of 0.42 makes and sells corn flour, tortillas, wheat flour. The stock has a PE of 7 , a PEG of 0.68 , and pays a yield of 2.8% .
Boyd Gaming Corporation (BYD) with a price sales ratio of 0.45 owns casinos in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. The stock has a PE of 10 , a PEG of 0.63 , and pays a yield of 6.0% .
AU Optronics Corp. (AUO) with a price sales ratio of 0.53 makes and sells thin film transistor liquid crystal display panels The stock has a PE of 3 , a PEG of 0.34 , and pays a yield of 7.3% .
Another metric worth looking at is stocks selling below book value.
Author does not own any of the above.
By Fred Fuld at Stockerblog.com
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