The cheapest stocks to buy are those that often have a lot Price-to-Sales Ratio or PSR. The valuation ratio is calculated by comparing a company’s stock price with its revenues. The figure indicates the value on each dollar of a company’s revenues or sales. Another name for a PSR is a “revenue multiple” or “sales multiple.”
Three stocks currently with low PSR Ratios that are cheap to buy are: American Axle & Manufact. Holdings, Inc. (NYSE:AXL), Commercial Metals Company (NYSE:CM), and Chicago Bridge & Iron Company, N.V. (NYSE:CBI).
American Axle & Manufact. Holdings, Inc. (NYSE:AXL) is $20.86 per share, as of its last trade, and its price has dropped -2.48% this year. It has an earnings over the past 5 years at 53.80%.
As for Commercial Metals Company (NYSE:CM), it saw a last earnings price of $16.05. The PSR Ratio is below the industry average; it is 0.91, whereas the average is at 1.95 for the industry. Over the past 5 years, the sales for the company grew by 80.40% annually, with an average rising rate of 15.90%.
For Chicago Bridge & Iron Company, N.V. (NYSE:CBI), the price-to-sales ratio for the company is 0.61, which is far below the industry average, which is 2.64. The business sales for it has risen by 32.50 per year, typically, with a 116.50% earnings per share boost. The long term trend has been up for several months now, since March 27, 2015. Its volatility is at 38.6, with a year high at 59.45 on May 18, 2015.
When the PSR ratio compares companies in the same sector, as done above, it is the most valuable. These three stocks are ones currently inexpensive to purchase, as forecast by the PSR Ratios. Typically the ratio has been calculated over the past 12 months or the most recent fiscal year.