Price-To-Sales Filter

Needless to say, if you're putting money to work in this market you better have good reason to do so including holding stocks that have very attractive valuations. Over the years, I've made no secret to the fact that I'm fond of using the price-to-sales ratio in this regard (i.e. the lower the ratio - the better especially when you compare stocks within the same sector).

Through this Excel spreadsheet you can see a breakdown of all of the stocks currently found within my stock screen machine along with their respective price-to-sales ratios. When looking through this data, I tend to focus my time on stocks in each sector that sport the highest and lowest price to sales ratio. I focus on the highest because I want to figure out why the market continues to value the stock so highly among its peers (and whether that will continue) as well as the lowest to determine if the risk/reward is such that on a valuation basis alone whether the stock is worthy of a nibble.

I know from personal experience it isn't easy looking for stocks to buy in this market. After all, no one really wants to buy anything right now which is exactly why you have to keep plugging away and staying focused on finding tomorrow's big winner.