MOS

Investment Insights on Low Price-to-Sales Stocks

• Key Stocks Highlighted: The article discusses five stocks with low price-to-sales (P/S) ratios: Precision Drilling (PDS), The Greenbrier Companies, Inc. (GBX), Green Dot (GDOT), The Mosaic Co. (MOS), and PagSeguro Digital (PAGS). These stocks are identified as having strong upside potential based on their valuation metrics.

• Valuation Metrics Explained: The price-to-earnings (P/E) ratio is commonly used for assessing stock value, but it has limitations, especially for unprofitable companies. The P/S ratio, which compares market capitalization to revenue, is more effective in these cases, providing a clearer picture of value when earnings are minimal or volatile.

• Investment Strategy: Low P/S stocks can be attractive as they often trade below their intrinsic value, offering opportunities for investors seeking growth without a premium price. However, the P/S ratio should not be used in isolation; it should be analyzed alongside other metrics like P/E, price/book, and debt/equity ratios.

Company Profiles

• Precision Drilling (PDS): This oilfield services company is focused on optimizing operational performance and improving cash flow generation. It has a positive long-term outlook due to expected growth in U.S. drilling, supported by LNG facility launches and pipeline expansions. PDS holds a Value Score of A and a Zacks Rank of #1.

• The Greenbrier Companies, Inc. (GBX): A leading supplier in the freight transportation market, Greenbrier benefits from strong customer relationships and a profitable leasing business. The company is well-positioned for sustained financial performance amid healthy market demand, currently holding a Value Score of A and a Zacks Rank of #2.

• Green Dot (GDOT): As a pro-consumer bank holding company, Green Dot excels in prepaid cards and Banking-as-a-Service (BaaS). Its asset-light model and strong partnerships with major companies like Walmart enhance its growth potential. GDOT has a Value Score of A and a Zacks Rank of #1.

• The Mosaic Co. (MOS): A major player in the agriculture sector, Mosaic is the largest integrated phosphate producer globally and among the top four potash producers. The company is experiencing strong demand and is focused on cost-cutting measures to improve its operating cost structure. MOS has a Value Score of A and a Zacks Rank of #1.

• PagSeguro Digital (PAGS): This Brazilian company offers a wide range of financial solutions, including digital banking and payment tools. PagSeguro is enhancing its digital platform and adjusting credit offerings to manage costs effectively. It has a Value Score of A and a Zacks Rank of #2.

Conclusion

• Investment Opportunities: The article emphasizes the importance of using the P/S ratio as a tool for identifying undervalued stocks with growth potential. Investors are encouraged to consider these five companies as part of their investment strategy, particularly in the context of their strong fundamentals and market positions.

• Research Tools: Zacks Investment Research offers tools like the Research Wizard to help investors screen for stocks and develop their own investment strategies. The platform is user-friendly and designed to assist in making informed investment decisions.

Dividend Announcements

• Gaming and Leisure Properties: The Board of Directors has declared a cash dividend of $0.78 per share for the third quarter of 2025, payable on September 26, 2025, to shareholders on record as of September 12, 2025. This marks an increase from the previous year's dividend of $0.76 per share.

• Wesco International: The company announced a quarterly cash dividend of $0.45375 per share, which will be paid on September 30, 2025, to shareholders of record at the close of business on September 12, 2025.

• Mosaic: The Board declared a quarterly dividend of $0.22 per share, scheduled for payment on September 18, 2025, to stockholders of record as of September 8, 2025.

• Lam Research: The company approved a 13% increase in its quarterly dividend, raising it from $0.23 to $0.26 per share. This dividend will be paid on October 15, 2025, to holders of record on September 24, 2025.

Additional Information

• Video Report: A daily dividend report is available, featuring companies such as WU, GLPI, WCC, MOS, and LRCX.

• Disclaimer: The views expressed in the report are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.

• Put Contract Overview: The $33.00 put contract has a bid of $1.14, allowing investors to purchase shares at $33.00 while effectively lowering their cost basis to $31.86 if sold-to-open.

• Potential Outcomes for Put Contract: There is a 55% chance the put contract will expire worthless, yielding a 3.45% return on cash commitment or 29.32% annualized.

• Call Contract Overview: The $34.00 call contract has a bid of $1.01, and selling it after purchasing shares at $33.17 could result in a total return of 5.55% if exercised by expiration.

• Volatility Insights: Implied volatility for the put and call contracts are 45% and 49%, respectively, while actual trailing twelve-month volatility is calculated at 39%.