Thursday, June 28, 2012

4 Small Cap Consumer Stocks Trading For Cheap Despite Steady Profitability


Small-cap stocks tend to offer investors greater growth opportunities than large-cap alternatives, but the extra reward comes with its fair share of added risk. To dampen that risk, we searched for companies whose fundamentals indicate that they can keep returning profits over time. As a way to hone in on possible deals in the market, we only looked at companies that seem undervalued by their price-multiple fundamentals. You might be interested in the list we came up with.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 dollars 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
... Read the rest at SeekingAlpha.com

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