Due largely to how quickly Amazon was increasing its revenue, its price-to-sales ratio fell from a high of about 40 to 1.8. As a result, Amazon looks like a comparative bargain in 2003.

The price-to-sales ratio is a convenient tool to gauge the value of stocks incurring losses or in an early development cycle. Stocks like JAKK, AGR, PCB, FIHL and GBX hold promise.

Generally, a smaller price-to-sales (P/S) ratio (i.e. less than 1.0) is usually thought to be a better investment since the investor is paying less for each unit of sales.

The price-to-sales ratio is a convenient tool to gauge the value of stocks incurring losses or in an early development cycle. Stocks like AGR, SMP, GBX and PFE hold promise.

Unlike expense ratios, sales loads are not included in annual operating costs and go to the seller, not the fund. Investor Alert: Our 10 best stocks to buy right now › ...