Tuesday, May 22, 2012

6 Undervalued Small Cap Consumer Stocks That Analysts Rate As Buys


Interested in following smaller companies? Interested in gaining exposure to consumer companies? Do you prefer stocks that analysts rate as 'Buy'? Looking for undervalued stocks? Keeping this idea in mind, we ran a screen you might be interested in.The Price/Sales ratio is a price-multiple valuation metric used to help identify if a firm is cheap by its twelve month trailing sales numbers. In the most basic terms, it let's an investor know how much the investment community is willing to pay for every dollar worth of sales. A firm with a P/S ratio of one or lower would be viewed as cheap because investors are paying $1 or less for every dollars worth of a firm's sales. On the other hand, a firm is generally considered to be expensive when the P/S ratio is above three. These are general guidelines used by the investment community not hard rules to
... Read the rest at SeekingAlpha.com

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