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Zacks.com featured highlights include: Big Lots, Hub, Domtar, Hitachi, Avnet, GMS and Triple-S

Zacks Equity Research
Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today

For Immediate Release

Chicago, IL – August 15, 2018 - Stocks in this week’s article are Big Lots BIG, Hub Group HUBG, Domtar UFS, Hitachi HTHIY, Avnet AVT, GMS Inc. GMS and Triple-S Management Corporation GTS.

7 Low Price-to-Sales Stocks to Add Value to Your Portfolio

Though Price-to-Earnings is the first thing to cross one’s mind while using valuation metrics, Price-to-Sales has emerged as a convenient tool to determine the value of stocks that are incurring losses or are in an early cycle of development, generating meager or no profits.

While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, price-to-sales could indicate the hidden strength of its 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 are paying for each dollar of revenues generated by the company.

If the price-to-sales ratio is 1, it means that investors are paying $1 for every $1 of revenues generated by the company. So, it goes without saying that 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.  

If the price-to-sales ratio is 1, it means that investors are paying $1 for every $1 of revenues generated by the company. So, it goes without saying that 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 versus a stock with a high price-to-sales ratio.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/317781/7-low-pricetosales-stocks-to-add-value-to-your-portfolio

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