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The Price/Sales Ratio is a well known price-multiple valuation metric. This ratio shows investors how much the investment world values every dollar of a firm’s sales. A lower ratio signifies more potential investment opportunity. Given the market uncertainty related to financial companies we thought that this would be an interesting metric to use when looking for potential opportunities within the space.

We ran a screen for Financial Stocks with a P/S Ratio of 1 or less. From this narrowed pool we then screened for firms that were at least 20% below their 52-Week High.

The Forward P/BV Ratio ranks the firms highest to lowest:

1. Citigroup Inc. (NYSE:C)

Sector

Financial Services

Industry

Banks - Global

Market Cap

$78,026M

Beta

2.65

The company offers consumer and corporate financial services around the world. The firm’s P/S Ratio is 1. C is 48.08% below its 52-Week High. The short interest was 1.90% as of 08/15/2011.

2. First Horizon National Corp. (NYSE:FHN)

Sector

Financial Services

Industry

Banks-Regional - US

Market Cap

$1,638M

Beta

0.73

The company operates First Tennessee Bank National Association and offers a variety of financial services through four business segments. The firm’s P/S Ratio is 0.99. FNH is 50.99% below its 52-Week High. The short interest was 3.10% as of 08/15/2011.

3. Knight Capital Group, Inc. (NYSE:KCG)

Sector

Financial Services

Industry

Capital Markets

Market Cap

$1,162M

Beta

0.20

The company provides access to the capital markets. The firm’s P/S Ratio is .99. KGC is 20.38% below its 52-Week High. The short interest was 14.20% as of 08/15/2011. Given the high short interest this may be a short favorite or potentially a great short squeeze.

4. Cowen Group, Inc. (NASDAQ:COWN)

Sector

Financial Services

Industry

Capital Markets

Market Cap

$366M

Beta

1.13

The company offers sales and trading, research, and other financial services. The firm’s P/S Ratio is 0.97. COWN is 37.50% below its 52-Week High. The short interest was 17.80% as of 08/15/2011.

5. Och-Ziff Capital Management (NYSE:OZM)

Sector

Financial Services

Industry

Asset Management

Market Cap

$3,702M

Beta

0.95

The firm’s P/S Ratio is 0.96. OZM is 43.62% below its 52-Week High. The short interest was 36.01% as of 08/15/2011. Given the high short interest this may be a short favorite or potentially a great short squeeze.

6. Raymond James Financial, Inc. (NYSE:RJF)

Sector

Financial Services

Industry

Capital Markets

Market Cap

$3,215M

Beta

1.22

The company offers a variety of financial products and services. The firm’s P/S Ratio is 0.95. RJF is 36.01% below its 52-Week High. The short interest was 2.00% as of 08/15/2011.

7. XL Group PLC (NYSE:XL)

Sector

Financial Services

Industry

Insurance - Property & Casualty

Market Cap

$5,734M

Beta

2.47

The company offers reinsurance, insurance, and other financial products. The firm’s P/S Ratio is 0.95. XL is 24.30% below its 52-Week High. The short interest was 4.90% as of 08/15/2011.

8. Axis Capital Holdings Ltd. (NYSE:AXS)

Sector

Financial Services

Industry

Insurance - Property & Casualty

Market Cap

$3,495M

Beta

0.70

The company offers insurance and reinsurance products worldwide. The firm’s P/S Ratio is 0.90. AXS is 28.48% below its 52-Week High. The short interest was 1.40% as of 08/15/2011.

9. Nomura Holdings, Inc. (NYSE:NMR)

Sector

Financial Services

Industry

Capital Markets

Market Cap

$13,620M

Beta

1.41

The company is a investment banking and securities firm. The firm’s P/S Ratio is 0.8. NMR is 44.00% below its 52-Week High. The short interest was N/A as of 08/15/2011.

10. Itau Unibanco Holding SA (NYSE:ITUB)

Sector

Financial Services

Industry

Banks - Regional - Latin America

Market Cap

$77,588M

Beta

1.70

The firm’s P/S Ratio is 0.85. ITUB is 34.94% below its 52-Week High. The short interest was N/A as of 08/15/2011.

We hope this list helps as investors do their own due diligence on firms in the Financial Sector.


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 10 Undervalued, Oversold Financial Stocks Offering Good Value