Zacks.com featured expert Kevin Matras highlights: Equity LifeStyle Properties, Inc., The Greenbrier Companies, Inc., HNI Cor...
January 03 2012 - 10:12AM
Zacks
Chicago, IL – January 3, 2012 - Stocks in this week's article
include Equity LifeStyle Properties, Inc. (NYSE: ELS),
The Greenbrier Companies, Inc. (NYSE: GBX), HNI Corp.
(NYSE: HNI), Plains Exploration & Production Co. (NYSE:
PXP) and SXC Health Solutions Corp. (NASDAQ: SXCI). Kevin
Matras explains the Price to sales ratio and why it's one of his
favorite valuation metrics.
Screen of the Week written by Kevin Matras of Zacks
Investment Research:
This week, I'm focusing on one of my favorite valuation metrics
for determining a company's under or overvaluation.
The Price to Sales ratio is simply: Price divided by Sales.
If the Price to Sales ratio is 1, then you're paying $1 for
every $1 of sales the company makes. A price to sales ratio of 2
means you're paying $2 for every $1 of sales the company makes.
As you might have guessed, the lower the Price the Sales ratio,
the better.
A price to Sales ratio of .5 means you're paying 50 cents for
every $1 of sales the company makes. And paying less than a dollar
for a dollar's worth of something is a good bargain.
One of the reasons I like the Price to Sales ratio is because it
looks at sales rather than earnings like the P/E ratio does. Sales
are harder to manipulate on an income statement than earnings.
Secondly, I'd be hard pressed to find a screen where adding the
Price to Sales ratio didn't improve it.
For me, I prefer to look for stocks with a Price to Sales ratio
under 1. Although, I'm willing to go up to 4, depending on the
industry. But I've found that the best way to use it is to find
stocks with a Price to Sales ratio below the median for its
Industry.
And that's what we'll be focusing on in this week's
screen...
For the rest of this Screen of the Week article please visit
Zacks.com at: http://www.zacks.com/commentary/19813/
Sign up now for your free trial today and start picking better
stocks immediately. And with the backtesting feature, you can test
your ideas to see how you can improve your trading in both up
markets and down markets. Don't wait for the market to get better
before you decide to do better. Start learning how to be a better
trader today: http://at.zacks.com/?id=5529
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. Each week, Zacks Profit from the Pros free email newsletter
shares a new screening strategy. Learn more about it here
http://at.zacks.com/?id=5530
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc.,
which was formed in 1978 by Leonard Zacks. As a PhD in mathematics
Len knew he could find patterns in stock market data that would
lead to superior investment results. Amongst his many
accomplishments was the formation of his proprietary stock picking
system; the Zacks Rank, which continues to outperform the market by
nearly a 3 to 1 margin. The best way to unlock the profitable stock
recommendations and market insights of Zacks Investment Research is
through our free daily email newsletter; Profit from the Pros. In
short, it's your steady flow of Profitable ideas GUARANTEED to be
worth your time! Register for your free subscription to Profit from
the Pros http://at.zacks.com/?id=5531
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook:
http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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.
Visit http://www.zacks.com/performance for information about the
performance numbers displayed in this press release.
Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before
making any investments. Nothing herein should be construed as an
offer or solicitation to buy or sell any security.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
support@zacks.com
http://www.zacks.com
EQUITY LIFESTYL (ELS): Free Stock Analysis Report
GREENBRIER COS (GBX): Free Stock Analysis Report
HNI CORP (HNI): Free Stock Analysis Report
PLAINS EXPL&PRD (PXP): Free Stock Analysis Report
SXC HEALTH SOL (SXCI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Plains Exploration (NYSE:PXP)
Historical Stock Chart
From Apr 2024 to May 2024
Plains Exploration (NYSE:PXP)
Historical Stock Chart
From May 2023 to May 2024