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Zacks Basic Screens

Discover the Basic Screens below to find a strategy that best fits your investment needs.

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High Price/Sales

Investors may consider screening for stocks with a high Price/Sales (P/S) ratio for several reasons. First, the P/S ratio measures a company's stock price relative to its revenue. A high P/S ratio can indicate that the market has high expectations for the company's revenue growth potential, which may be driven by a favorable industry outlook or the company's competitive position in the market. Second, stocks with high P/S ratios may indicate that a company has a higher pricing power in the market, which can translate to higher profit margins. This can be attractive to investors who are looking for companies that have a strong competitive position and pricing power. However, it is important to note that a high P/S ratio does not always mean that a stock is a good investment. Investors should consider other fundamental and technical analysis, such as the company's financial health, earnings growth potential, and industry outlook, before making investment decisions based solely on a high P/S ratio. Additionally, investors should consider their risk tolerance and overall investment objectives before investing in stocks with high P/S ratios.

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