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There is a camp of investors that specifically seek out stocks that have a low price-to-sales ratio (NYSEARCA:PSR). Big-time money manager and long-time Forbes columnist Ken Fisher is the person who popularized the idea in the 1980s, but the method still holds true today.

The premise is simple. Fisher demonstrated that the lower a company's stock price is relative to its sales, the more attractive its stock is, assuming that the company is also growing its earnings and has a strong balance sheet with little debt. Obviously, what is good for one company may not be good for another - differences in company size and industry have to be accounted for. Fisher's strategy takes all this into account. For do-it-yourself investors, the strategy is a good choice for investors who want to own conservatively financed, well-growing companies that have been overlooked by Wall Street, and as such are undervalued.

Here is a list of seven companies that fit into this strategy.

The AES Corporation (NYSE:AES) is an electric utilities company with a $9.63 billion market cap. It is currently priced at 9.65 times its forward earnings and has a PSR of 0.55. The company's EPS is forecasted to grow 11.47% per annum over the next five years. AES recently traded at $12.55 a share. Scott Scher and Michael Prober's Clovis Capital Management had over $20.49 million invested in AES at the end of the third quarter.

Research in Motion (RIMM) is diversified communication services company with a $8.62 billion market cap. It is currently priced at 5.57 times its forward earnings and has a PSR of 0.44. The company's EPS is forecasted to grow 2.25% per annum over the next five years. RIMM recently traded at $16.44 a share. Leon Cooperman's Omega Advisors initiated a new position in RIMM during the third quarter, worth $28.93 million.

Hertz Global Holdings, Inc. (NYSE:HTZ) is a rental and leasing services company with a $5.45 billion market cap. It is currently priced at 9.99 times its forward earnings and has a PSR of 0.67. The company's EPS is forecasted to grow 12.67% per annum over the next five years. HTZ recently traded at $13.09 a share. Glenn Russell Dubin's Highbridge Capital Management had $127.48 million in HTZ at the end of September after increasing its stake in the company by 45% during the third quarter.

Ashland, Inc. (NYSE:ASH) is a major diversified chemicals company with a $4.66 billion market cap. It is currently priced at 8.83 times its forward earnings and has a PSR of 0.72. The company's EPS is forecasted to grow 11.33% per annum over the next five years. ASH recently traded at $59.68 a share. Jean-Marie Eveillard's First Eagle Investment Management had $172.62 million in ASH at the end of September after upping its holding in the company by +379% during the third quarter.

Ternium (NYSE:TX) is a $4.24 billion market cap steel and iron company. It is currently priced at 6.71 times its forward earnings and has a PSR of 0.48. The company's EPS is forecasted to grow 7.90% per annum over the next five years. TX recently traded at $21.13 a share. Christian Leone's Luxor Capital Group owned $77.34 million in the company at the end of the third quarter.

Aeropostale (NYSE:ARO) is a clothing company with a $1.33 billion market cap. It is currently priced at 14.03 times its forward earnings and has a PSR of 0.56. The company's EPS is forecasted to grow 12.58% per annum over the next five years. ARO recently traded at $16.41 a share. Ron Gutfleish's Elm Ridge Capital initiated a $20.09 stake in ARO during the third quarter.

Children's Place (NASDAQ:PLCE) is a clothing company with a $1.21 billion market cap. It is currently priced at 12.98 times its forward earnings and has a PSR of 0.71. The company's EPS is forecasted to grow 13.24% per annum over the next five years. PLCE recently traded at $48.67 a share. Phill Gross and Robert Atchinson's Adage Capital Management had $107.24 million in PLCE at the end of September after raising its position in the company by +34% during the third quarter.

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

Source: 7 Stocks With Low Price-To-Sales Ratios