5 Stocks with Low Price-to-Sales Ratios for Growth at a Discount

Oshkosh Corp., EPAM Systems, Green Dot, Mosaic, and PagSeguro Digital are stocks with low price-to-sales ratios, indicating potential for higher returns. The price-to-sales ratio reflects how much investors pay for each dollar of revenue generated by a company. A stock with a lower price-to-sales ratio is considered a better investment.

Investors seeking undervalued opportunities in the stock market can benefit from examining companies with low price-to-sales (P/S) ratios. The P/S ratio, which measures how much investors pay for each dollar of revenue generated by a company, provides a valuable metric for identifying growth at a discount. When combined with strong fundamentals and positive business momentum, a low P/S ratio can signal a stock poised for a breakout.

Oshkosh Corporation (OSK) is a leading designer, developer, and manufacturer of custom-built vehicles and equipment. With a P/S ratio below 1, OSK offers a compelling value proposition. The company has expanded its capabilities through strategic acquisitions, such as AUSA for agriculture, JBT’s AeroTech for air transport, and Hinowa for electrification, positioning it at the forefront of safety and productivity in the market. OSK’s recent innovations, including the Volterra ZFL eRCV, an electric refuse vehicle, and AI-driven waste contamination detection, further enhance its growth prospects. Currently, OSK has a Value Score of B and a Zacks Rank #1 5 Price-to-Sales Stocks Positioned to Benefit From Market Shifts^[1].

EPAM Systems, Inc. (EPAM) is well-known for its software engineering and IT consulting services. With a P/S ratio below 1, EPAM presents an attractive investment opportunity. The company is benefiting from the ongoing digital transformation by enterprises and a focus on customer engagement and product development. EPAM’s strategic acquisitions and partnerships, along with its investment in Gen AI capabilities, are driving top-line growth. A sustained focus on realigning the cost structure with the current demand environment is likely to benefit margins. EPAM currently has a Value Score of B and a Zacks Rank #2 5 Price-to-Sales Stocks Positioned to Benefit From Market Shifts^[1].

Green Dot Corporation (GDOT) is a pro-consumer bank holding company and personal banking provider. With a P/S ratio below 1, GDOT offers a strong value proposition. The company is a leader in prepaid cards and Banking-as-a-Service (BaaS), partnering with major companies like Walmart, Uber, and Apple. Its asset-light model ensures high interchange fees and reduced reliance on interest income, keeping the balance sheet strong. GDOT’s long-standing relationship with Walmart is a key driver of its operating revenues. Currently, GDOT flaunts a Zacks Rank #1 and has a Value Score of A 5 Price-to-Sales Stocks Positioned to Benefit From Market Shifts^[1].

Mosaic (MOS) is a leading producer and marketer of concentrated phosphate and potash for the global agriculture industry. With a P/S ratio below 1, MOS presents an attractive investment opportunity. The company is witnessing strong demand in its key markets, driven by attractive farmer economics. Mosaic’s cost transformation work and progress in controlling per-ton selling, general, and administrative (SG&A) expenses are further enhancing its growth prospects. MOS currently has a Value Score of A and a Zacks Rank #2 5 Price-to-Sales Stocks Positioned to Benefit From Market Shifts^[1].

PagSeguro Digital (PAGS) offers a broad suite of financial and payment solutions tailored for consumers, individual entrepreneurs, micro-merchants, and small to mid-sized businesses across Brazil and select international markets. With a P/S ratio below 1, PAGS presents a compelling value proposition. The company is strengthening its digital banking platform and expanding services for consumers and merchants. PAGS’s shift toward secured lending reflects a disciplined, risk-aware strategy. With a focus on innovation, sustainable growth, and prudent financial management, PAGS is well-positioned to seize long-term opportunities in Brazil’s dynamic digital finance space. Currently, PAGS has a Value Score of A and a Zacks Rank #2 5 Price-to-Sales Stocks Positioned to Benefit From Market Shifts^[1].

Investors should remember that while a low P/S ratio indicates potential value, it should be combined with other fundamental analysis to make informed investment decisions. A company with high debt and a low P/S ratio may not be an ideal choice, as the high debt level will have to be paid off at some point, leading to further share issuance and a higher P/S ratio.