5 Stocks With Low Price-to-Sales Ratios Poised to Multiply Your Gains
Investing in stocks based on valuation metrics is considered a smart strategy. The price-to-earnings (P/E) ratio is often the go-to metric due to its simplicity and ease of use. However, the price-to-sales (P/S) ratio is more useful for evaluating stocks of companies that are unprofitable or in early growth stages, as it helps assess value when earnings are minimal or non-existent.
Molson Coors Beverage Company TAP, G-III Apparel Group GIII, Gibraltar Industries ROCK, PRA Group PRAA and Medallion Financial MFIN are some companies with low price-to-sales ratios and the potential to offer higher returns.
While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, its price-to-sales can indicate the…
