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Zacks.com featured highlights include Janus Henderson, The Greenbrier Companies, Precision Drilling, The Mosaic Company and PagSeguro Digital

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For Immediate Release

Chicago, IL – August 12, 2025 – Stocks in this week’s article are Janus Henderson Group plc (JHG - Free Report) , The Greenbrier Companies, Inc. (GBX - Free Report) , Precision Drilling (PDS - Free Report) , The Mosaic Company (MOS - Free Report) and PagSeguro Digital (PAGS - Free Report) .

Buy These 5 Low Price-to-Sales Stocks That Are Set for Strong Upside

Investing in stocks based on valuation metrics is a proven strategy for identifying opportunities with strong upside potential. While the price-to-earnings (P/E) ratio is a popular tool for gauging value, it has its limitations, especially when evaluating companies that are unprofitable or still in their early growth phases.

In such cases, the price-to-sales (P/S) ratio becomes particularly valuable. By comparing a company's market capitalization to its revenues, the P/S ratio offers a clearer picture of value when earnings are minimal or volatile.

If you are looking for growth at a discount, low P/S stocks can offer compelling opportunities. These stocks often trade below their intrinsic value, making them attractive to investors seeking upside potential without paying a premium. While the P/S ratio alone does not guarantee success, when combined with strong fundamentals and positive business momentum, it can signal a stock poised for a breakout.

Janus Henderson Group plc, The Greenbrier Companies, Inc., Precision Drilling, The Mosaic Company and PagSeguro Digital are some companies with low price-to-sales ratios and the potential to offer higher returns.

What is the Price-to-Sales Ratio?

While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, its price-to-sales can indicate the hidden strength of the business. This underrated ratio is also used to identify a recovery situation or ensure a company's growth is not overvalued.

A stock's price-to-sales ratio reflects how much investors pay for each dollar of revenue generated by a company.

If the price-to-sales ratio is 1, investors are paying $1 for every $1 of revenues generated by the company. A stock with a price-to-sales ratio below 1 is a good bargain, as investors need to pay less than a dollar for a dollar's worth.

Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.

The price-to-sales ratio is often preferred over price-to-earnings, as companies can manipulate their earnings using various accounting measures. However, sales are harder to manipulate and are relatively reliable.

However, one should keep in mind that a company with high debt and a low price-to-sales ratio is not an ideal choice. The high debt level will have to be paid off at some point, leading to further share issuance, a rise in market cap and a higher price-to-sales ratio.

In any case, the price-to-sales ratio used in isolation cannot do the trick. One should analyze other ratios like Price/Earnings, Price/Book and Debt/Equity before arriving at any investment decision.

Here are five of the 25 stocks that qualified the screening:

Janus Henderson is a global asset management holding company that, through its subsidiaries, delivers investment solutions to institutional, retail and high-net-worth clients. The company manages tailored equity and fixed-income portfolios, along with a diverse range of mutual funds spanning equity, fixed income and balanced strategies. With expertise in growth capital, middle-market and buyout investments, Janus Henderson combines deep market insight with disciplined portfolio management to help clients achieve their long-term financial goals. Its diverse portfolio and proven active management capabilities provide a foundation for capturing opportunities.

Janus Henderson's asset base has grown significantly, supported by sustained positive net inflows and strengthened by its partnership with Guardian. With rising earnings, disciplined capital returns and a solid balance sheet, JHG is well-positioned to reinvest in product innovation, broaden its global distribution and deepen client relationships. This momentum, combined with strategic growth initiatives, positions JHG to deliver long-term value for shareholders while navigating evolving market dynamics. Janus Henderson currently flaunts a Zacks Rank #1 and has a Value Score of B. You can see the complete list of today's Zacks #1 Rank stocks here.

Greenbrier is a leading international supplier of equipment and services to global freight transportation markets. The company's broad product lineup, extensive market relationships, supportive customer experience and deep commercial origination capabilities create a unique leadership position and enable ongoing success. These factors provide revenue visibility while supporting its profitable leasing business, which is growing through disciplined investments in leased railcar fleet and robust lease renewals.

Greenbrier is progressing well on its long-term goals. Management expects a sustained financial performance amid healthy market demand. GBX currently has a Value Score of A and a Zacks Rank #2.

Precision Drilling, an oilfield services company, provides onshore drilling, completion and production services to exploration and production firms in the oil, natural gas and geothermal sectors across North America and the Middle East. In the United States, the company has been focused on optimizing operational performance for its customers while seeking to improve field margins and cash flow generation.

Precision Drilling has a positive long-term outlook for U.S. drilling, supported by the expected launch of Gulf Coast LNG facilities and the completion of several major oil and gas mergers and acquisitions. The company's Trans Mountain pipeline expansion is driving stable returns for producers, leading to increased heavy oil drilling activity. Additionally, the imminent start-up of LNG Canada is expected to improve and stabilize natural gas prices, supporting more drilling in the Montney region. PDS has a Value Score of A and sports a Zacks Rank #2 at present.

Mosaic is a leading producer and marketer of concentrated phosphate and potash for the global agriculture industry. It was formed through the combination of the fertilizer businesses of agribusiness giant Cargill Incorporated and IMC Global Inc. Mosaic is the biggest integrated phosphate producer globally and is among the four largest potash producers in the world. The company is witnessing strong demand in its key markets. Farmer economics remain attractive in most global growing regions on strong crop demand, affordable inputs and favorable weather.

Mosaic continues to benefit from its extensive cost transformation work. The company is taking actions to cut costs amid a still challenging operating environment through its cost-cutting program, leading to an improvement in its operating cost structure. It is making progress in controlling its per-ton selling, general and administrative (SG&A) expenses. The company remains committed to carrying out investments with high returns and moderate capital expenditure. MOS currently has a Value Score of A and a Zacks Rank #2.

São Paulo, Brazil-based PagSeguro Digital offers a broad suite of financial and payment solutions tailored for consumers, individual entrepreneurs, micro-merchants, and small to mid-sized businesses across Brazil and select international markets. Its offerings include digital banking, wire transfers, tax payments, ATM access, and POS and online payment tools. With a tech-driven, integrated ecosystem, PagSeguro delivers accessible services that support daily operations and drive business growth.

PAGS is strengthening its digital banking platform, expanding services for consumers and merchants, while adjusting credit offerings to manage funding cost pressures. Its shift toward secured lending reflects a disciplined, risk-aware strategy. With a focus on innovation, sustainable growth and prudent financial management, PagSeguro is well-positioned to seize long-term opportunities in Brazil's dynamic digital finance space. PAGS currently has a Value Score of A and a Zacks Rank #2.

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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2696853/buy-these-5-low-price-to-sales-stocks-that-are-set-for-strong-upside

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.

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