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For the time it seems the European heads of state have found a long awaited "solution" to the Greek crisis and the investment community has let out a deep sigh of relief. Still, some in the investment community have been so focused on this one situation that they've been blind to another great prize. The prize being all the opportunities it created in the market through market volatility. In our view the time is now ripe to review consumer cyclical names that have cheap valuations and strong margins given that the sector has been underperforming the S&P 500 since mid-August.

The Price/Sales ratio is a price-multiple valuation used to gauge whether a company is undervalued, fairly valued, or overvalued according to its sales numbers. The idea behind the valuation is to find out how much an investor is paying for every dollar worth of sales. For instance a company with a P/S ratio of 1 indicates that an investor is paying $1 for every dollar worth of sales. A rule of thumb is that when a company has a ratio of 1 or lower it's technically undervalued at face value.

The Operating Profit Margin is a profitability ratio that reviews a company's operational efficiency. This ratio allows an investor to get a picture of how much profit is kept on every dollar of sales after variables costs are covered. One indication that a has company has a sound operating margin is when it illustrates a clear ability to hold a strong margin over an extended period of time or is currently improving it.

We first looked for companies that were trading at a cheap price-multiple valuation (PS=<1). From this narrowed pool we then focused on names that have illustrated sound profitability (1-year fiscal operating margin>20%). We did not screen out any companies by market cap.

The list is ranked from highest to lowest by the P/S ratio:

1. Sinclair Broadcast Group, Inc. (SBGI)

Sector

Consumer Cyclical

Industry

Broadcasting - TV

Market Cap

$742M

Beta

1.96

The company is a diversified television broadcasting company. The company’s 1-year fiscal operating margin is 31.33%. SBGI’s P/S ratio is 0.98. The short interest was 8.60% as of 09/30/2011.

2. Belo Corporation. (BLC)

Sector

Consumer Cyclical

Industry

Broadcasting - TV

Market Cap

$652M

Beta

3.70

The company is a broadcasting company with a variety of media channels. The company’s 1-year fiscal operating margin is 31.36%. BLC’s P/S ratio is 0.95. The short interest was 9.10% as of 09/30/2011.

3. Enersis SA. (ENI)

Sector

Utilities

Industry

Utilities - Regulated Electric

Market Cap

$12,375M

Beta

0.36

The company distributes, generates, and sells electricity all over South America. The company’s 1-year fiscal operating margin is 25.97%. ENI’s P/S ratio is 0.94. The short interest was N/A as of 09/30/2011.

4. Partner Communications Company. (PTNR)

Sector

Commun Svs

Industry

Telecom Services

Market Cap

$1,796M

Beta

0.79

The company operates a telecom network in Israel. The company’s 1-year fiscal operating margin is 27.87% PTNR.’s P/S ratio is 0.93. The short interest was N/A as of 09/30/2011.

5. ASM International NV. (ASMI)

Sector

Technology

Industry

Semiconductor Equipment & Materials

Market Cap

$1,580M

Beta

2.55

The company designs production systems and offers services for manufacturing semiconductor devices. The company’s 1-year fiscal operating margin is 26.87%. ASMI’s P/S ratio is 0.92. The short interest was 0.20% as of 09/30/2011.

6. Danaos Corporation. (DAC)

Sector

Industrials

Industry

Shipping & Ports

Market Cap

$395M

Beta

1.84

The company owns and operates a fleet containerships. The company’s 1-year fiscal operating margin is 23.95%. DAC’s P/S ratio is 0.91. The short interest was 0.10% as of 09/30/2011.

7. Statoil ASA. (STO)

Sector

Energy

Industry

Oil & Gas Integrated

Market Cap

$81,597M

Beta

1.04

The company is an integrated oil and gas company in Norway. The 1-year fiscal operating margin profit margin is 25.91%. STO’s P/S ratio is 0.76. The short interest was N/A as of 09/30/2011.

8. Genco Shipping & Trading, Ltd. (GNK)

Sector

Industrials

Industry

Shipping & Ports

Market Cap

$318M

Beta

1.93

The company operates a fleet of drybulk cargo ships. The company’s 1-year fiscal operating margin is 49.32%. GNK’s P/S ratio is 0.74. The short interest was 20.00% as of 09/30/2011.

9. Lender Processing Services, In. (LPS)

Sector

Industrials

Industry

Business Services

Market Cap

$1,421M

Beta

1.06

The company’s 1-year fiscal operating margin is 22.67%. LPS’s P/S ratio is 0.64. The short interest was 8.40% as of 09/30/2011.

10. Petroleo Brasileiro SA Petrobr. (PBR)

Sector

Energy

Industry

Oil & Gas Integrated

Market Cap

$160,513M

Beta

1.44

The energy company is the leader in oil exploration, production, and distribution within Brazil. The company’s 1-year fiscal operating margin is 20.12%. PBR’s P/S ratio is 0.63. The short interest was N/A as of 09/30/2011.

We hope this list helps as investors do their own due diligence and research on potential opportunities in the consumer cyclical sector.

Source: 10 Cheap, Profitable Consumer Stocks That Look Ready To Turnaround Right Now