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Zacks.com featured highlights include GIII Apparel Group, Sonoco Products, Hamilton Insurance Group, Pampa Energia S.A. and Pfizer

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For Immediate Release

Chicago, IL – October 1, 2024 – Stocks in this week’s article are GIII Apparel Group (GIII - Free Report) , Sonoco Products Co. (SON - Free Report) , Hamilton Insurance Group, Ltd. (HG - Free Report) , Pampa Energia S.A. (PAM - Free Report) and Pfizer (PFE - Free Report) .

Buy These Top 5 Price-to-Sales Stocks for Better Investment Returns

Investing in stocks, after analyzing the valuation metrics, is considered one of the best practices. The price-to-earnings ratio has always been the obvious choice when considering the valuation metrics. 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 incurring losses or in an early development cycle, generating meager or no profit.

What's the Price-to-Sales Ratio?

While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, its price-to-sales can indicate the hidden strength of the business. This underrated ratio is also used to identify a recovery situation or ensure 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. 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 a 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 a higher price-to-sales ratio.

In any case, the price-to-sales ratio used in isolation cannot do the trick. One should analyze other ratios like Price/Earnings, Price/Book and Debt/Equity before arriving at any investment decision.

GIII Apparel Group, Sonoco Products Co.,Hamilton Insurance Group, Ltd.,Pampa Energia S.A. and Pfizer are some companies with a low price-to-sales ratio and the potential to offer higher returns.

Here are five of the 16 stocks that qualified after the screening:

G-III Apparel is a manufacturer, designer and distributor of apparel and accessories under licensed, owned and private-label brands. GIII has accelerated digital growth. It strives to become the best omnichannel organization, enhancing the DKNY and Karl Lagerfeld Paris e-commerce platforms, and partnering with Amazon and Fanatics. Digital and omnichannel growth is a key priority.

GIII's commitment to brand building, effective marketing, cost management and market expansion provides a solid foundation for continued growth and profitability in fiscal 2025 and beyond. The company's strategic initiatives leverage design and merchandising strengths to drive profitable sales growth through innovative products and collections. GIII has a Value Score of A and currently sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

Sonoco is a leading provider of consumer, industrial, and protective packaging and packaging supply chain services. The company is set to benefit from its consumer packaging segment, strong productivity and cost management. Recent acquisitions and business investments are expected to drive near-term growth. Sonoco is focused on optimizing operations through productivity improvements, standardization and cost control. It is also implementing synergy initiatives, including optimizing raw material purchases, managing indirect expenses and improving supply-chain logistics, all contributing to its cost-saving goals.

The consumer packaging segment has gained from the Metal Packaging acquisition and strategic pricing actions. Sonoco has implemented aggressive pricing strategies across its business to mitigate inflationary pressures on raw materials and other costs. The company has a Value Score of A and a Zacks Rank #2.

Based in Pembroke, Bermuda, Hamilton provides underwriting specialty insurance and reinsurance risks in Bermuda and internationally. Its three underwriting platforms — Hamilton Global Specialty, Hamilton Re and Hamilton Select — each with dedicated and experienced leadership, provide access to diversified and profitable markets around the world.

Hamilton is focused on underwriting expertise, enhanced by data and technology, to create significant shareholder value. HG currently has a Value Score of A and a Zacks Rank #2.

Pampa Energia is an independent energy-integrated company in Argentina. Through its subsidiaries, PAM is engaged in the generation, transmission and distribution of electricity in Argentina. The company operates through Electricity Generation, Oil and Gas, Petrochemicals, and Holding and Other Business segments. It generates electricity through thermal generation plants, thermal gas-fired generation plants and hydroelectric power generation systems, as well as a wind farm.

The company also explores for and produces oil and gas, and operates a high-voltage electricity transmission network. It produces petrochemicals, such as styrene, styrene-butadiene rubber and polystyrene. The company engages in gas transportation and advisory services activities. PAM currently flaunts a Zacks Rank #1 and a Value Score of A.

Based in New York, Pfizer markets a wide range of drugs and vaccines. The company's Biopharma reporting segment includes three broad therapeutic areas — Primary Care, Specialty Care and Oncology. PFE has committed significant resources toward the development of treatments in the fields of oncology, internal medicine, rare diseases, immunology, inflammation, vaccines and hospitals.

Pfizer expects better non-COVID operational revenue growth in the upcoming quarters, driven by its products like Vyndaqel and Prevnar; launches like Abrysvo, Velsipity and Penbraya; and newly acquired products, including those acquired from Seagen. Huge profits from its COVID-19 products strengthened its cash position. PFE currently has a Value Score of B 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/2343445/buy-these-top-5-price-to-sales-stocks-for-better-investment-returns

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.

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