price to sales ratio

PFIZER INC. $18 (New York symbol PFE; Income Portfolio, Consumer sector; Shares outstanding: 7.8 billion; Market cap: $140.4 billion; Price-to-sales ratio: 2.1; Dividend yield: 4.4%; TSINetwork Rating: Above Average; www.pfizer.com) has extended the patent on Viagra, its popular erectile-dysfunction drug, to October 2019. That will block rival Teva Pharmaceuticals Inc. (Nasdaq symbol TEVA) from selling a generic version. Pfizer gets $2 billion a year from Viagra, or 3% of its annual sales of $67 billion. Pfizer is a buy. MCDONALD’S CORP. $90 (New York symbol MCD; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.0 billion; Market cap: $90.0 billion; Price-to-sales ratio: 3.6; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.mcdonalds.com) saw its overall same-store sales rise 5.1% in July 2011. That’s down from a 7.0% sales gain in July 2010....

EBAY INC. $29 (Nasdaq symbol EBAY; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 1.3 billion; Market cap: $37.7 billion; Price-to-sales ratio: 3.7; No dividends paid; TSINetwork Rating: Above Average; www.ebay.com) has set up a new section of its online auction site for buying and selling gold and silver coins and bars. This new service has attracted many gold buyers, due to record gold and silver prices and eBay’s strong reputation. (Note that we still feel the best way to profit from rising gold is through well-established gold stocks like Newmont). As well, eBay should continue to profit as the sluggish economy prompts more people to sell goods online to supplement their incomes. eBay is a buy.

PETSMART INC. $41 (Nasdaq symbol PETM; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 113.4 million; Market cap: $4.6 billion; Price-to-sales ratio: 0.8; Dividend yield: 1.4%; TSINetwork Rating: Above Average; www.petsmart.com) is the biggest pet-supply chain in the U.S. In all, it operates 1,197 pet stores in the U.S. and Canada. It also has 185 in-store PetsHotels, which look after pets while their owners are away. PetSmart focuses on selling premium pet foods and other products that most supermarkets don’t carry, including its own line of private-label products. Even with the slow economy, premium pet food sales remain strong. That should make it easier for the company to pass along higher ingredient costs to its customers. As well, PetSmart separates itself from other retailers with exclusive brands, such as Martha Stewart pet-care products. The company also has a new deal to sell dog toys under the Toys R Us brand starting next year....

Fertilizer maker Agrium has dropped from its peak of $98 in February 2011. That’s mainly due to fears that the global economy is entering another recession. Still, Agrium’s long-term outlook remains strong. That’s largely because rising prosperity in developing regions, such as Asia and Latin America, continues to spur demand for higher-quality food. In response, farmers are applying more fertilizer to increase their crop yields. As well, rising use of corn for fuel additives, such as ethanol, should continue to support fertilizer prices. Another plus for Agrium is that it uses natural gas to make its products. New shale gas discoveries in North America have increased gas supply and depressed prices....

Slowing economic growth and concerns about high U.S. and European debt continue to dampen prices for commodities, like oil, coal and copper. However, rising demand from fast-growing regions, such as Asia and Latin America, should help support resource prices over the long term. The best way to protect the Resources part of your portfolio from volatile commodity prices is with high-quality companies, such as these three. They also trade at attractive multiples to earnings and cash flow. CENOVUS ENERGY INC. $37 (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 754.1 million; Market cap: $27.9 billion; Price-to-sales ratio: 1.8; Dividend yield: 2.6%; TSINetwork Rating: Extra Risk; www.cenovus.com) operates three oil-sands properties in Alberta and one in Saskatchewan. Cenovus ships the heavy bitumen from these projects to refineries in Illinois and Texas. ConocoPhillips (New York symbol COP) owns 50% of these refineries, as well as 50% of Cenovus’ two main oil-sands projects. Cenovus also owns conventional oil and natural gas properties....

MANITOBA TELECOM SERVICES INC. $31 (Toronto symbol MBT; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 65.2 million; Market cap: $2.0 billion; Price-to-sales ratio: 1.1; Dividend yield: 5.5%; TSINetwork Rating: Average; www.mtsallstream.com) has been upgrading its wireless and Internet networks in the past few years. That’s helping attract new customers for its wireless, high-speed Internet and Internet-based TV services. The company has also cut its annual costs by $20.6 million in the first six months of 2011. For all of 2011, it expects to save between $25 million and $35 million. In the three months ended June 30, 2011, the company’s earnings rose 41.5%, to $49.8 million, or $0.76 a share. A year earlier, it earned $35.2 million, or $0.54. Without unusual items, earnings per share would have risen 9.2%, to $1.31 from $1.20. Revenue rose 0.2%, to $443.7 million from $442.9 million. Manitoba Telecom is a buy.

CANADIAN IMPERIAL BANK OF COMMERCE $77 (Toronto symbol CM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 397.0 million; Market cap: $30.2 billion; Price-to-sales ratio: 2.0; Dividend yield: 4.5%; TSINetwork Rating: Above Average; www.cibc.com) was the first Canadian bank to let its customers access their accounts using smartphones and other mobile devices. This service has been successful, so CIBC now plans to launch software that will let its brokerage clients use their mobile phones to manage their portfolios and trade stocks. This should give CIBC an edge over its competitors as more people access the Internet through mobile devices instead of computers. CIBC is a buy.

ANDREW PELLER LTD. $9.05 (Toronto symbol ADW.A; Income Portfolio, Consumer sector; Shares outstanding: 14.3 million; Market cap: $129.4 million; Price-to-sales ratio: 0.5; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.andrewpeller.com) is Canada’s second-largest wine producer, after Vincor Canada. Peller operates wineries in B.C., Ontario and Nova Scotia. It also sells home-winemaking kits and imports wines from other countries. In its 2011 fiscal year, which ended March 31, 2011, Peller’s sales rose 0.9%, to $265.4 million from $263.2 million in fiscal 2010. The company launched new wines during the year, and saw strong sales of its premium wines. That helped offset new taxes on certain wines sold through company-owned stores in Ontario. These taxes cut the company’s 2011 sales by $3 million....

Both TransCanada and Enbridge are building new oil pipelines. These are expensive projects, but the companies’ regulated businesses give them lots of cash flow for expansion and continued dividend increases. TRANSCANADA CORP. $40 (Toronto symbol TRP; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 703.0 million; Market cap: $27.3 billion; Price-to-sales ratio: 3.4; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.transcanada.com) operates a pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. It also owns or invests in over 20 power plants in Canada and the U.S. In June 2010, the company opened the first phase of its Keystone pipeline. This phase pumps crude oil from Alberta to refineries in Illinois. The second phase extends to Oklahoma, and began operating in February 2011....

LOBLAW COMPANIES $36 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 282.2 million; Market cap: $11.0 billion; Price-to-sales ratio: 1.0; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.loblaw.ca) has opened five stand-alone Joe Fresh casual-clothing stores since October 2010. It plans to open five more stores by the end of 2011. It eventually wants to expand the chain to 20 stores. As well, Loblaw continues to sell Joe Fresh clothing in its supermarkets. That’s helping it compete with general retailers, like Wal-Mart, which have expanded into groceries. Loblaw is a buy.