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The price/sales ratio illustrates how much Wall Street is willing to pay for every dollar's worth of sales. The general rule of thumb is the lower the number, the more attractive the investment. This ratio highlights companies that may be out of favor and/or undervalued. Of course no one indicator is going to be the silver bullet to investing in the right companies, but it does help narrow the pool of names.

We ran a screen for large cap companies that had a price/sales ratio of less than 1. From this pool we screened companies that were bouncing off their 52-week lows (X>10%).

The list is ranked from lowest to highest by price/sales ratio. As usual, short interest data is as of July 15.

Valero Energy Corporation (VLO)

Sector

Energy

Industry

Oil & Gas Refining & Marketing

Market Cap

$ 11,019M

Beta

1.08

Analyst Sentiment

10/19 – List Buy/ Outperform (Bullish)

This company is the largest independent petroleum refiner in North America. The company’s price/sales ratio is 0.11. The company is 24.34% above its 52-week low. The short interest for the firm is 2.50%.

Cardinal Health (CAH)

Sector

Healthcare

Industry

Medical Distribution

Market Cap

$ 13,487M

Beta

0.88

Analyst Sentiment

14/20 – List Buy/ Outperform (Bullish)

The company provides services and products that focus on healthcare productivity and safety. The company’s price/sales ratio is 0.14. The company is 29.57% above its 52-week low. The short interest for the firm is 1.50%.

Kroger (KR)

Sector

Consumer Defensive

Industry

Grocery Stores

Market Cap

$ 13,270M

Beta

0.32

Analyst Sentiment

13/20 – List Buy/ Outperform (Bullish)

The company operates a variety of business such as drug stores, grocery stores, convenience stores, and multi-department stores throughout the US. The company’s price/sales ratio is 0.16. The company is 11.49% above its 52-week low. The short interest for the firm is 2.20%.

McKesson, Inc. (MCK)

Sector

Medical Distribution

Industry

Healthcare

Market Cap

$ 18,098M

Beta

0.75

Analyst Sentiment

17/21 – List hold/ Neutral (Neutral)

The company supplies healthcare services and supplies that improve quality and reduce costs. The company’s price/sales ratio is 0.17. The company is 27.11 % above its 52-week low. The short interest for the firm is 1.00%.

Hitachi, Ltd. (HIT)

Sector

Industrials

Industry

Conglomerates

Market Cap

$ 24,639M

Beta

1.33

Analyst Sentiment

15/20 – List Buy/ Outperform (Bullish)

The company develops and sells a variety of electronic devices, consumer products, and electricity generation systems. The company’s price/sales ratio is 0.20. The company is 37.66% above its 52-week low.

Marathon Oil (MRO)

Sector

Oil & Gas Integrated

Industry

Energy

Market Cap

$ 18,057M

Beta

1.19

Analyst Sentiment

11/22 – List Hold/ Neutral (Neutral)

The company explores for, produces, and sells crude oil along with natural gas.The company’s price/sales ratio is 0.24. The company is 38.68% above its 52-week low. The short interest for the firm is 1.90%.

Humana (HUM)

Sector

Healthcare

Industry

Health Care Plans

Market Cap

$ 11,630M

Beta

0.38

Analyst Sentiment

13/22 – List Buy/ Outperform (Bullish)

The company offers health insurance services through a variety of different distribution channels such as employer groups, government-sponsored programs, and more. The company’s price/sales ratio is 0.33. The company is 47.66% above its 52-week low. The short interest for the firm is 6.60%.

Medco Health Solutions, Inc. (MHS)

Sector

Healthcare

Industry

Health Care Plans

Market Cap

$ 20,056M

Beta

0.56

Analyst Sentiment

5/6 – List Buy/ Outperform (Bullish)

The company offers a variety of prescription drugs through various services and benefit programs. The company’s price/sales ratio is 0.33. The company is 19.72 % above its 52-week low. The short interest for the firm is 1.90%.

BP Plc (BP)

Sector

Energy

Industry

Oil & Gas Integrated

Market Cap

$ 120,877M

Beta

1.10

Analyst Sentiment

9/12 – List Buy/ Outperform (Bullish)

BP is one of the largest integrated oil companies in the world. The company’s price/sales ratio is 0.35. The company is 12.09% above its 52-week low.

Costco Wholesale Corporation (COST)

Sector

Consumer Defensive

Industry

Discount Stores

Market Cap

$ 30,818M

Beta

0.8

Analyst Sentiment

13/28 – List Buy/ Outperform (Bullish)

The company offers a membership program that allows for self-service low price products. The company’s price/sales ratio is 0.37. The company is 30.23% above its 52-week low. The short interest for the firm is 1.30%.

As usual, we hope this helps investors as they do their own due diligence on large cap companies that aren't only coming off their 52-week lows but also offer low P/S ratios.

Source: 10 Oversold Large Cap Companies With Cheap Sales Numbers