Zacks.com featured highlights include PRA, Macy's, Par Pacific, Apple Hospitality REIT and PBF Energy

For Immediate Release

Chicago, IL – September 3, 2026 – Stocks in this week’s article are PRA Group, Inc. PRAA, Macy's, Inc. M, Par Pacific Holdings, Inc. PARR, Apple Hospitality REIT, Inc. APLE and PBF Energy Inc. PBF.

5 Undervalued Stocks Based on Price-to-Sales Worth a Closer Look

Investing in stocks based on valuation metrics is a proven strategy for identifying companies with strong upside potential. Although the price-to-earnings (P/E) ratio is widely used to assess value, it becomes less meaningful when a company is unprofitable, operating with thin margins or experiencing volatile earnings.

In such situations, the price-to-sales (P/S) ratio can offer a more useful perspective. By comparing a company's market value with its revenues, the metric helps investors evaluate how much they are paying for each dollar of sales.

Stocks with low P/S ratios may present attractive opportunities, particularly when supported by solid fundamentals, improving margins and favorable business momentum. However, a low multiple should not be viewed in isolation, as it may also reflect structural weaknesses or limited growth prospects. Used alongside measures of profitability, financial strength and operating performance, the price-to-sales ratio can help uncover undervalued stocks with meaningful upside potential.

PRA Group, Inc., Macy's, Inc., Par Pacific Holdings, Inc., Apple Hospitality REIT, Inc. and PBF Energy Inc. 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 ratio 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 revenues 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 17 stocks that qualified the screening:

PRA Group is a global financial services company operating primarily in the United States and Europe, with a smaller presence in South America, Canada and Australia. Its core business involves purchasing, collecting and managing portfolios of non-performing loans. The company primarily acquires unpaid consumer obligations from banks, consumer finance companies, auto finance providers and other creditors, generally purchasing these portfolios at a discount to their face value.

PRA Group continues to improve collection performance by leveraging its proprietary recovery database, predictive analytics, digital engagement tools and legal collections to maximize recoveries from purchased portfolios. The company continues to benefit from stronger collection execution, disciplined portfolio purchases and a more scalable operating model. Its broad international footprint, proprietary data and growing use of AI support better portfolio selection, recovery efficiency and long-term earnings potential. PRAA currently has a Value Score of B and sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

Macy's Bold New Chapter strategy is focused on improving the company's long-term competitive position through a more productive store base, stronger luxury banners, disciplined merchandising and enhanced customer engagement. The Reimagine initiative provides a repeatable operating model to improve service, store standards and local execution across key locations. Bloomingdale's and Bluemercury strengthen portfolio diversification, support a more favorable sales mix and reduce its reliance on the core department store business.

High-margin revenue streams, including credit card income and Macy's Media Network, enhance earnings quality and provide stability beyond merchandise sales. Continued investment in omnichannel capabilities, artificial intelligence, supply-chain automation and inventory management should improve efficiency, availability and conversion. Strong liquidity supports these initiatives, while brand partnerships, curated assortments and experiential retail programs help reinforce traffic, loyalty and long-term relevance with customers. M presently has a Zacks Rank #2 and a Value Score of A. 

Houston, TX-based Par Pacific offers a compelling investment case, supported by its integrated downstream platform spanning refining, logistics and retail operations. The company combines strong financial flexibility, with $937.7 million in liquidity, an active share repurchase program and lower financing costs, positioning it to create shareholder value through market cycles. Operational execution remains a key strength, highlighted by record Hawaii and Montana throughput, restored Washington operations and completed Rockies maintenance.

Hawaii Renewables provides an additional long-term growth catalyst as renewable diesel production ramps through the second half of 2026, while excess RIN monetization and affiliate earnings further support durable cash flow growth. PARR currently sports a Zacks Rank #1 and has a Value Score of A.

Apple Hospitality is a publicly traded real estate investment trust that owns the largest and most diverse portfolio of upscale, room-focused hotels in the United States. The company offers a fundamentally sound lodging REIT story built on portfolio quality, brand alignment and disciplined execution. It owns a geographically diversified collection of room-focused hotels affiliated with leading brands, giving it broad exposure to leisure, corporate and group demand.

Management has demonstrated prudent capital allocation through selective acquisitions, timely dispositions and consistent reinvestment to keep properties competitive. A flexible balance sheet and ample liquidity provide resilience across cycles. While recent demand softness weighed on its performance, leisure trends remain supportive and operational agility positions the portfolio to benefit as business travel normalizes, supporting long-term cash flow stability and shareholder returns. APLE has a Value Score of B and a Zacks Rank of 2 at present.

Parsippany, NJ-based PBF Energy benefits from a geographically diversified refining network that provides flexibility in sourcing crude, optimizing operations and supplying multiple regional markets. Its complex refining system enables the processing of a broad range of crude types while producing higher-value refined products, supporting profitability as market conditions evolve. The company also maintains a relatively conservative balance sheet with solid liquidity, providing financial flexibility and resilience through refining cycles while supporting its focus on reducing debt when conditions allow.

In addition, PBF continues to advance its Refining Business Improvement program, which is aimed at lowering costs and improving operational efficiency. These initiatives are expected to enhance refinery performance, reduce operating and capital expenditure, and strengthen long-term earnings potential, positioning the company to benefit from improved reliability and disciplined execution. PBF currently sports a Zacks Rank #1 and has a Value Score of A.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2983823/5-undervalued-stocks-based-on-price-to-sales-worth-a-closer-look

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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