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Zacks.com featured highlights include DISH Network, PBF Energy, TravelCenters of America, DCP Midstream and Ryder System
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For Immediate Release
Chicago, IL – November 4, 2022 – Stocks in this week’s article are DISH Network Corp. , PBF Energy Inc. (PBF - Free Report) , TravelCenters of America Inc. , DCP Midstream, LP and Ryder System (R - Free Report) .
5 Low Price-to-Sales Stocks to Play the Current Market
Investment in stocks after the analysis of the 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 cycle of development, generating meager or no profit.
What's Price-to-Sales Ratio?
While a loss-making company with a negative price-to-earnings ratio falls out of investors' favor, its price-to-sales could indicate the hidden strength of the business. This underrated ratio is also used to identify a recovery situation or ensure that 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. So, 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 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 also analyze other ratios like Price/Earnings, Price/Book and Debt/Equity before arriving at any investment decision.
DISH Network Corp., PBF Energy Inc., TravelCenters of America Inc., DCP Midstream, LP and Ryder System are some stocks that have a low price-to-sales ratio and the potential to offer higher returns.
Here are five of the 20 stocks that qualified the screening:
DISH Network provides pay-TV services in the United States. The company operates in two segments, Pay-TV and Wireless. It offers a wide selection of local, regional and national HD programming. It also provides DVRs (including Hopper whole-home HD DVR), multiple tuner receivers, 1080p and 4K video on demand, and external hard drives. DISH's focus on acquiring and retaining subscribers, who will be profitable over the long term, is expected to drive growth.
Partnerships with the likes of Qualcomm, Aviat, Everstream, Segra, Uniti, Zayo, Mavenir, Fujitsu, Altiostar, VMware, MATRIXX Software and Crown Castle for DISH's standalone 5G network are other key catalysts. These initiatives bode well for DISH's top-line growth in the long haul. DISH currently has a Zacks Rank #2 and a Value Score of A.
PBF Energy is a leading refiner of crude. Through five oil refineries and associated infrastructure in the United States, the company provides end-products that comprise heating oil, transportation fuels, lubricants and many related products. The refineries can collectively process 900,000 barrels of crude every day.
PBF has one of the most complex refining systems in the United States, with an overall Nelson Complexity Index reading of 13.2. This reflects that its oil refineries, which can generate lighter and better grades of refined products, are more sophisticated than most of the other refiners. PBF currently sports a Zacks Rank #1 and has a Value Score of A.
TravelCenters of America operates travel centers and standalone restaurants in the United States and Canada. Its travel centers offer a range of products and services, including diesel fuel and gasoline, diesel exhaust fluid, truck repair and maintenance, and roadside services.
TravelCenters of America also operates full-service and quick-service restaurants, and various customer amenities. It operates restaurants under the franchise agreement. TA currently has a Value Score of A and sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
DCP Midstream is a leading energy infrastructure firm. The Fortune 500 firm has a strong and sustainable business strategy, with a diversified portfolio of gathering, logistics, marketing and processing assets across nine states. DCP Midstream's business model is designed to earn stable fee-based revenues from key midstream assets that are being utilized by shippers and customers over a long period.
Based in Denver, CO, DCP Midstream, a master limited partnership, was created in 2005. The leading midstream energy player is banking on strong fee-based earnings from its long-term contracted business related to logistics and marketing. The DCP stock currently has a Value Score of A and a Zacks Rank #2.
Florida-based Ryder System is recognized as one of the world's largest providers of integrated logistics and transportation solutions. Ryder's customers range from small businesses to large international enterprises. They are drawn from a wide variety of industries, the most significant of which include automotive, electronics, transportation, grocery, lumber and wood products, food service, and home furnishing.
Ryder is benefiting from improving economic and freight conditions in the United States. The stock currently has a Value Score of A and a Zacks Rank #2.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your trial to the Research Wizard today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include DISH Network, PBF Energy, TravelCenters of America, DCP Midstream and Ryder System
For Immediate Release
Chicago, IL – November 4, 2022 – Stocks in this week’s article are DISH Network Corp. , PBF Energy Inc. (PBF - Free Report) , TravelCenters of America Inc. , DCP Midstream, LP and Ryder System (R - Free Report) .
5 Low Price-to-Sales Stocks to Play the Current Market
Investment in stocks after the analysis of the 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 cycle of development, generating meager or no profit.
What's Price-to-Sales Ratio?
While a loss-making company with a negative price-to-earnings ratio falls out of investors' favor, its price-to-sales could indicate the hidden strength of the business. This underrated ratio is also used to identify a recovery situation or ensure that 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. So, 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 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 also analyze other ratios like Price/Earnings, Price/Book and Debt/Equity before arriving at any investment decision.
DISH Network Corp., PBF Energy Inc., TravelCenters of America Inc., DCP Midstream, LP and Ryder System are some stocks that have a low price-to-sales ratio and the potential to offer higher returns.
Here are five of the 20 stocks that qualified the screening:
DISH Network provides pay-TV services in the United States. The company operates in two segments, Pay-TV and Wireless. It offers a wide selection of local, regional and national HD programming. It also provides DVRs (including Hopper whole-home HD DVR), multiple tuner receivers, 1080p and 4K video on demand, and external hard drives. DISH's focus on acquiring and retaining subscribers, who will be profitable over the long term, is expected to drive growth.
Partnerships with the likes of Qualcomm, Aviat, Everstream, Segra, Uniti, Zayo, Mavenir, Fujitsu, Altiostar, VMware, MATRIXX Software and Crown Castle for DISH's standalone 5G network are other key catalysts. These initiatives bode well for DISH's top-line growth in the long haul. DISH currently has a Zacks Rank #2 and a Value Score of A.
PBF Energy is a leading refiner of crude. Through five oil refineries and associated infrastructure in the United States, the company provides end-products that comprise heating oil, transportation fuels, lubricants and many related products. The refineries can collectively process 900,000 barrels of crude every day.
PBF has one of the most complex refining systems in the United States, with an overall Nelson Complexity Index reading of 13.2. This reflects that its oil refineries, which can generate lighter and better grades of refined products, are more sophisticated than most of the other refiners. PBF currently sports a Zacks Rank #1 and has a Value Score of A.
TravelCenters of America operates travel centers and standalone restaurants in the United States and Canada. Its travel centers offer a range of products and services, including diesel fuel and gasoline, diesel exhaust fluid, truck repair and maintenance, and roadside services.
TravelCenters of America also operates full-service and quick-service restaurants, and various customer amenities. It operates restaurants under the franchise agreement. TA currently has a Value Score of A and sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
DCP Midstream is a leading energy infrastructure firm. The Fortune 500 firm has a strong and sustainable business strategy, with a diversified portfolio of gathering, logistics, marketing and processing assets across nine states. DCP Midstream's business model is designed to earn stable fee-based revenues from key midstream assets that are being utilized by shippers and customers over a long period.
Based in Denver, CO, DCP Midstream, a master limited partnership, was created in 2005. The leading midstream energy player is banking on strong fee-based earnings from its long-term contracted business related to logistics and marketing. The DCP stock currently has a Value Score of A and a Zacks Rank #2.
Florida-based Ryder System is recognized as one of the world's largest providers of integrated logistics and transportation solutions. Ryder's customers range from small businesses to large international enterprises. They are drawn from a wide variety of industries, the most significant of which include automotive, electronics, transportation, grocery, lumber and wood products, food service, and home furnishing.
Ryder is benefiting from improving economic and freight conditions in the United States. The stock currently has a Value Score of A and a Zacks Rank #2.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your trial to the Research Wizard today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2013351/5-low-price-to-sales-stocks-to-play-in-the-current-market
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.