Zacks.com featured highlights include Hamilton Insurance, Macy's, Cognizant, PCB Bancorp and PRA Group

For Immediate Release

Chicago, IL – November 20, 2025 – Stocks in this week’s article are Hamilton Insurance Group, Ltd. HG, Macy's Inc. M, Cognizant Technology Solutions CTSH, PCB Bancorp PCB and PRA Group PRAA.

5 Value Stocks with Compelling Price-to-Sales Ratios and Growth Ahead

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.

Hamilton Insurance Group, Ltd., Macy's Inc., Cognizant Technology Solutions, PCB Bancorp and PRA Group 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 18 stocks that qualified the screening:

Hamilton Insurance operates as a specialty insurance and reinsurance company in Bermuda and internationally. The company operates Hamilton Global Specialty, Hamilton Select and Hamilton Re underwriting platforms. HG is benefiting from strong execution, a clear growth roadmap and disciplined capital management. The company is capitalizing on profitable market opportunities, with gross premiums written rising meaningfully, reflecting momentum in property, casualty and specialty lines.

Hamilton’s underwriting strategy is increasingly diversified and supported by a stable attritional loss ratio. Its focus on long-term portfolio resilience is evident in efforts to refine its risk mix and manage volatility. With a well-capitalized balance sheet, prudent reserve development and a scalable underwriting platform, Hamilton is well-positioned to navigate industry headwinds while capturing sustained, profitable growth in the global specialty insurance and reinsurance markets. HG currently sports a Zacks Rank #1 and a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

Macy’s is in the process of a complete makeover and has outlined plans under its three-year Bold New Chapter program to better adapt to the evolving retail ecosystem. Notably, the company is banking on Backstage locations, Vendor Direct, Store Pickup and Loyalty Program. The department store chain is investing in areas where it has a strong foothold, and these include dresses, fine jewelry, fragrances, men’s tailored, women's shoes and beauty.

Macy's is an omnichannel retail organization operating stores, websites and mobile applications under three brands — Macy's, Bloomingdale's and bluemercury. The company’s transformation under the Bold New Chapter strategy gained significant traction, with the Reimagine 125 initiative delivering consistent outperformance. Digital initiatives continue to be a key pillar of Macy’s growth strategy. M has a Value Score of A and carries a Zacks Rank #2 at present.

Cognizant is a leading professional services company. The company’s services include digital services and solutions, consulting, application development, systems integration, application testing, application maintenance, infrastructure services and business process services. Cognizant is benefiting from a strong product pipeline, including a favorable mix of new opportunities. Robust organic growth, particularly in Health Sciences and Financial Services, has been a significant growth driver.

The acquisition of Belcan is bolstering CTSH’s portfolio, adding 450 basis points. An expanding clientele, driven by partnerships with companies like Docusign, OMRON and ServiceNow, is also contributing to growth. AI initiatives, including Flowsource and Neuro Edge, are enhancing productivity in software development and IT operations. CTSH currently has a Value Score of A and a Zacks Rank #2.

Los Angeles-based PCB Bancorp serves as the holding company for PCB Bank, offering a range of banking products and services tailored to small and medium-sized businesses, individuals, and professionals in Southern California. Its offerings include demand deposits, savings accounts, money market accounts, time deposits and certificates of deposit.

PCB Bancorp also provides specialized services, such as trade finance, remote deposit capture, courier deposit services, positive pay, zero balance accounts and sweep accounts. The company’s strategic expansion and branch network optimization position it for sustained balance sheet growth and strong financial performance. PCB has a Value Score of A and a Zacks Rank #2 at present.

PRA Group is a global financial and business services company in the Americas, Australia and Europe. Its primary business involves the purchase, collection and management of portfolios of non-performing loans. The company’s solid inorganic growth story, strategic initiatives and improving cash collection position it well for long-term growth. Its improving portfolio supply, with continued credit normalization in the United States and better pricing in the domestic market, is a major tailwind. A positive purchasing environment benefits the firm.

PRAA is reaping the benefits of its decision to expand its presence beyond the primary debt collection business, stepping into government collections and audit services. Strategic acquisitions boost its performance. Key moves include the acquisition of eGov Systems to strengthen its government business, along with partnerships with the IRS and Banco Bradesco S.A. PRA Group has a Value Score of A and currently carries a Zacks Rank #2.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can create your own strategies and test them first before taking the investment plunge.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your trial to the Research Wizard today. And the next time you read an economic report, open up the Research Wizard, plug your finds in and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2793185/5-value-stocks-with-compelling-price-to-sales-ratios-growth-ahead

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

Zacks.com 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.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

Follow us on Twitter:  https://www.twitter.com/zacksresearch

Join us on Facebook:  https://www.facebook.com/ZacksInvestmentResearch

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.

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: [email protected]

Visit: https://www.zacks.com/

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research