Top 5 Bargain Price-to-Sales Stocks Set to Outperform in 2025
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.
JAKKS Pacific JAKK, GIII Apparel Group GIII, Sunoco SUN, Fidelis Insurance Holdings Limited FIHL and Employers Holdings, Inc. EIG are some companies with a low price-to-sales ratio 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…
