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A Trio of Large Caps With Low Price-Sales Ratios

GuruFocus.com
·3 min read

- By Alberto Abaterusso

Investors who are seeking for value opportunities may be interested in the following stocks, as their price-sales ratios are lower than the S&P 500's historical mean, which is 1.57 as of the writing of this article.

Furthermore, sell-side analysts on Wall Street predict these stocks will increase their sales significantly this year and in 2021.


UnitedHealth Group Inc

The first company investors could be interested in is UnitedHealth Group Inc (NYSE:UNH), a Minnetonka, Minnesota-based diversified healthcare company.

As of Oct. 23, UnitedHealth Group has a price-sales ratio of 1.27, which results from a share price of $330.60 and revenue per share of $261.07 for the trailing twelve months ended on Sept. 29.

As a result of a nearly 34% increase over the past year, the stock has a market capitalization of $314.18 billion and a 52-week range of $187.72 to $335.65.

A Trio of Large Caps With Low Price-Sales Ratios
A Trio of Large Caps With Low Price-Sales Ratios

On Wall Street, sell-side analysts forecast the company will increase its revenue by 5.7% to $255.91 billion this year and by 8.7% to $278.09 billion in 2021.

As of October, the stock has 11 strong buy recommendation ratings and 11 buy recommendation ratings with an average target price of $357.84 per share.

Costco Wholesale Corp

The second company investors may be interested in is Costco Wholesale Corp. (NASDAQ:COST), an Issaquah, Washington-based operator of warehouse discount stores.

As of Oct. 23, Costco has a price-sales ratio of 1, which results from a share price of $374.60 and revenue per share of $375.64 for the trailing twelve months ended on Aug. 29.

Following a 25.3% increase over the past year through Friday, the stock has a market capitalization of $165.28 billion and a 52-week range of $271.28 to $384.87.

A Trio of Large Caps With Low Price-Sales Ratios
A Trio of Large Caps With Low Price-Sales Ratios

On Wall Street, sell-side analysts predict the company's total revenues to increase by 7.2% to $178.74 billion this year and by 7.3% to $191.7 billion in 2021.

As of October, the stock has seven strong buy recommendation ratings, 11 buy recommendation ratings and 11 hold recommendation ratings for an average target price of $368.07 per share.

Sony Corp

The third stock that could be of interest to investors is Sony Corp (NYSE:SNE), a Japanese global consumer electronics company.

As of Oct. 23, Sony Corp has a price-sales ratio of 1.18, which results from a share price of $75.43 and a revenue per share of $61.16 for the trailing twelve months ended on June 29.

As a result of a 27.72% increase in the share price over the past year, the market capitalization now trades at around $93.05 billion and the 52-week range is $50.94 to $84.15.

A Trio of Large Caps With Low Price-Sales Ratios
A Trio of Large Caps With Low Price-Sales Ratios

On Wall Street, sell-side analysts predict the company will see total revenues increase by 7.2% up to $79.71 billion this year and by 8.2% up to $86.25 billion in 2021.

As of October, the stock has two strong buy recommendation ratings for an average target price of $100.48 per share.

Disclosure: I have no positions in any securities mentioned in this article.

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This article first appeared on GuruFocus.