Neil Hennessy of Hennessy Funds is known for his use of the price-to-sales ratio to pinpoint the best places for a stock market investor's dollar. Based on that ratio — he's ready to buy.
"Today, you can buy a dollar of revenue in the Dow Jones (Industrials) for 74 cents on the dollar," he told CNBC. "Historically, it's traded over the last five years at $1.20 for a dollar in sales."
Hennessy says investors have been getting rid of shares in some very good companies, and now is the time to pick them up cheap.