featured expert Kevin Matras highlights: CACI International Inc., LeapFrog Enterprises, Inc., Navigant Consulting, Inc., Red Robin Gourmet Burgers, Inc. and Trinity Industries, Inc. - Press Releases

By Kevin Matras,

Shutterstock photo

Chicago, IL - March 20, 2012 - Stocks in this week's article include CACI International Inc. (NYSE: CACI ), LeapFrog Enterprises, Inc. (NYSE: LF ), Navigant Consulting, Inc. (NYSE: NCI ), Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB ) and Trinity Industries, Inc. (NYSE: TRN ). Kevin Matras explains the Price to sales ratio and why it's one of his favorite valuation metrics.

Screen of the Week written by Kevin Matras of Zacks Investment Research:

This week, I'm going to focus on the Price to Sales ratio for finding great stocks at great values.

The Price to Sales ratio is simply: Price divided by Sales.

If the Price to Sales ratio is 1, then you're paying $1 for every $1 of sales the company makes. A price to sales ratio of 2 means you're paying $2 for every $1 of sales the company makes.

As you might have guessed, the lower the Price the Sales ratio, the better.

A price to Sales ratio of .5 means you're paying 50 cents for every $1 of sales the company makes. And paying less than a dollar for a dollar's worth of something is a good bargain.

One of the reasons I like the Price to Sales ratio is because it looks at sales rather than earnings like the P/E ratio does. Sales are harder to manipulate on an income statement than earnings.

Secondly, I'd be hard pressed to find a screen where adding the Price to Sales ratio didn't improve it.

For me, I prefer to look for stocks with a Price to Sales ratio under 1. Although, I'm willing to go up to 4, depending on the industry. But the best way to use it, I've found, is to find stocks with a Price to Sales ratio below the median for its Industry.

And that's what we'll be focusing on in this week's screen.

For the rest of this Screen of the Week article, please visit at:

Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don't wait for the market to get better before you decide to do better. Start learning how to be a better trader today:

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros

Follow us on Twitter:

Join us on Facebook:

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Visit for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact: Jim Giaquinto

Phone: 312-265-9268

CACI INTL A ( CACI ): Free Stock Analysis Report
LEAPFROG ENTRPS ( LF ): Free Stock Analysis Report
NAVIGANT CONSLT ( NCI ): Free Stock Analysis Report
RED ROBIN GOURM ( RRGB ): Free Stock Analysis Report
TRINITY INDS IN ( TRN ): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: CACI , LF , NCI , RRGB , TRN

More from


Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by