Finding Hidden Value: 5 Stocks with Compelling Price-to-Sales Opportunities Heading Into 2026

When screening for undervalued stocks with genuine growth potential, traditional valuation metrics like P/E ratios can be misleading. For investors hunting bargains, the price-to-sales ratio offers a more reliable lens—especially when targeting companies with modest earnings or those navigating transition periods.

Why Price-to-Sales Ratio Beats P/E in Value Hunting

The genius of the P/S metric lies in its simplicity: it measures what investors pay for every dollar of revenue a business generates. Unlike earnings, which companies can adjust through accounting techniques, sales figures are concrete and difficult to manipulate.

A stock trading at a price-to-sales ratio below 1.0 is particularly intriguing—you’re essentially paying less than a dollar for every dollar of revenue. Pair this metric with strong fundamentals, healthy balance sheets and positive operational momentum, and you’ve got the ingredients for a potential breakout.

However, one caveat: don’t rely on price-to-sales ratio alone. High debt levels can mask hidden risks—when companies need to service debt, they often issue additional shares, which inflates the P/S multiple over time. Always cross-reference with debt-to-equity ratios, price-to-book valuations and earnings growth before committing capital.

Five Companies Primed for 2026 Growth

Our screening process identified stocks meeting strict criteria: low price-to-sales multiples relative to industry peers, favorable Zacks Rank positions (#1 or #2), Value Scores of A or B, manageable debt levels, and minimum $5 stock prices.

Hamilton Insurance Group (HG) stands out as a specialty insurance and reinsurance play with compelling momentum. Gross premiums written are accelerating across property, casualty and specialty lines, while the company’s three distinct underwriting platforms—Hamilton Global Specialty, Hamilton Select and Hamilton Re—diversify revenue streams. With disciplined capital management and a focus on portfolio resilience, HG combines defensive positioning with growth optionality. The company carries a Zacks Rank #1 and Value Score of A.

Macy’s (M) is mid-transformation through its Bold New Chapter strategic program. Rather than betting on a retail turnaround story, focus on the execution fundamentals: the Reimagine 125 initiative is delivering consistent wins, digital channels are expanding, and the company is doubling down on categories where it owns strong market position—jewelry, fragrances, beauty and tailored apparel. Its three-brand omnichannel architecture (Macy’s, Bloomingdale’s, bluemercury) creates multiple growth levers. M carries a Value Score of A and Zacks Rank #2.

GIII Apparel Group (GIII) manufactures and distributes branded apparel under owned labels (Donna Karan, DKNY, Karl Lagerfeld, Vilebrequin) and licensed partnerships. The company’s pivot toward owned brands is margin-accretive, offsetting declines from legacy PVH licenses. Four strategic pillars—product innovation, direct-to-consumer expansion, international penetration and licensing leverage—position GIII for sustained growth. Current ratings show Value Score A and Zacks Rank #2.

Green Dot Corporation (GDOT), a Pasadena-based banking-as-a-service provider, benefits from an asset-light model that generates high interchange revenue while minimizing balance sheet drag. Strategic partnerships with Walmart, Uber and Apple provide distribution scale. With modest debt, substantial cash reserves and a large addressable market in prepaid cards and BaaS solutions, Green Dot enjoys both financial stability and expansion runway. GDOT holds Zacks Rank #2 and Value Score A.

PRA Group (PRAA) operates a non-performing loan acquisition and collection platform across the Americas, Australia and Europe. Beyond its traditional debt collection business, PRAA is diversifying into government collections and audit services—moves validated by strategic acquisitions like eGov Systems and partnerships with the IRS and Banco Bradesco. Improving portfolio supply and credit normalization in the U.S. domestic market represent significant tailwinds. PRAA sports Value Score A and Zacks Rank #2.

The Selection Framework

Stocks meeting all criteria share common traits: trading below industry median valuations on a price-to-sales ratio basis, ranked favorably by analyst consensus, sporting fortress balance sheets and executing on clear strategic narratives. The combination of valuation discipline and operational momentum creates a setup where patient capital can compound meaningfully.

None of these picks are momentum trades or hype plays. Instead, they represent the intersection of deep value and positive business fundamentals—the classic breeding ground for multi-year appreciation cycles. As markets reassess 2026 opportunities, positions built on this foundation have historically delivered outsize returns.

Historical context: Zacks-identified portfolios gained +2,530.8% from 2012 through November 2025, vastly outpacing the S&P 500’s +570.3%. The methodology—rigorous screening combined with fundamental analysis—remains as relevant today as ever.

The key takeaway: when hunting for stocks positioned to deliver strong returns, don’t ignore the price-to-sales ratio as a foundational filter. Combined with smart risk management and diversification, it’s a powerful tool for building wealth through disciplined investing.