The Value Investor's Secret Weapon: The PEG Ratio

Asia's Tech News Daily
>, Click to get this free report, Zacks Investment Research” title=”Value Investor portfolio, See 3 crypto-related stocks now >>, Click to get this free report, Zacks Investment Research”> – Zacks

  • (1:00) – Value Investing Superstars: Using The Peg Ratio To Find Strong Stocks
  • (7:45) – Tracey’s Top Stock Picks
  • (21:35) – Episode Roundup: XOM, PFE, CF, CMA, CROX
  •                Podcast@Zacks.com

Welcome to Episode #264 of the Value Investor Podcast.

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

What if you could buy value stocks that also had great growth?

Does such a stock even exist?

The father of value investing, Benjamin Graham, believed it did. He was the first value investor to look for the added boost of growth when buying value stocks.

How to Screen for Value Stocks with Growth

The easiest way to find value stocks that also have growth is to use the PEG ratio.

The PEG ratio is the P/E divided by growth rate. A PEG ratio under 1.0 usually indicates that the company is undervalued but also has growth.

To narrow the screen to stocks that have rising earnings estimates, you should add the Zacks Rank of #1 (Strong Buy).

Running this screen returned 35 stocks which have the highest Zacks Ranks, value and growth.

A rare combination.

5 Stocks with Both Value and Growth

1.       Exxon Mobil XOM

Exxon Mobil is a large integrated oil company.

Shares are up 52% over the last year and are at 2-year highs.

But Exxon still has a PEG ratio of just 0.8 and a P/E of 11.6. Exxon’s earnings are expected to rise 22% in 2022 to $6.16 from $5.07.

Shareholders also get Exxon’s juicy dividend, currently yielding 4.9%.

Will 2022 be another stellar year for this energy giant?

2.       Pfizer PFE

Pfizer is a large pharmaceutical company which is now famous for its coronavirus vaccines.

This Zacks Rank #1 (Strong Buy) is expected to grow earnings 36.2% in 2022.

Pfizer has a PEG ratio of just 0.8.

It, too, pays a dividend, which is currently yielding 2.8%.

Shares have jumped 50% in the last year.

Does Pfizer still have more gas left in the tank?

3.       CF Industries CF

CF Industries is a producer of ammonia. It promotes itself as being at the forefront of clean hydrogen and ammonia supply.

Earnings are expected to soar 246% to $12.40 in 2022 from $3.58 in 2021.

With that kind of earnings growth, it’s not surprising that CF Industries has a forward P/E of just 5.6.

Shares of CF Industries are up 60% over the last year as the fertilizer market remains tight.

Should value investors be diving in?

4.       Comerica CMA

Comerica is a regional bank headquartered in Dallas, Texas with bank branches in Texas, Michigan, Arizona, California and Florida.

Earnings are expected to decline 29% in 2022, however. How is it a Zacks Rank #1 (Strong Buy)?

The analysts are bullish. 3 estimates were raised for 2022 in the last week.

Comerica has a PEG ratio of just 0.5%.

Shares are near 52-week highs, up 56% in the last year.

Can Comerica keep this momentum in 2022?

5.       Crocs, Inc. CROX

Crocs makes casual footwear for men, women and children. You know their shoes. Doesn’t everyone?

Crocs were hot during the pandemic. Analysts expect revenue to rise another 20% in 2022.

Earnings are expected to rise 30% to $9.87 from $7.59 in 2021.

Shares are up 80% over the last year, but have fallen 15% in the last month on retail weakness.

That means the shares are on sale. Crocs is still cheap, with a forward P/E of just 12.8.

Is Crocs the perfect combination of value and growth in 2022?

What Else Should You Know About the PEG Ratio?

Tune into this week’s podcast to find out.


Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Exxon Mobil Corporation (XOM): Free Stock Analysis Report

 

Pfizer Inc. (PFE): Free Stock Analysis Report

 

Comerica Incorporated (CMA): Free Stock Analysis Report

 

CF Industries Holdings, Inc. (CF): Free Stock Analysis Report

 

Crocs, Inc. (CROX): Free Stock Analysis Report

 

To read this article on Zacks.com click here.

 

Zacks Investment Research

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Here's What Could Help Stellantis (STLA) Maintain Its Recent Price Strength

While “the trend is your friend” when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of ... Read more »

New Strong Buy Stocks for January 17th

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today: – Zacks Axis Capital Holdings AXS: This Bermuda-based holding company for the AXIS group of companies ... Read more »

Netflix Is Raising Prices in the U.S.

The battle between streaming giant Netflix and its many competitors continues — and this time it comes with a higher price tag for customers in the U.S. Reuters reports that Netflix Inc. ... Read more »

Building machines that work for everyone – how diversity of test subjects is a technology blind spot, and what to do about it

People interact with machines in countless ways every day. In some cases, they actively control a device, like driving a car or using an app on a smartphone. Sometimes people ... Read more »

This Controversial Personality Trait Can Help You Avoid a Business Crisis

When dormant, volcanoes are a beautiful sight to behold. They are some of the most majestic structures in the natural world — emoting strength and power, among other qualities — ... Read more »

Is In-Person Networking Obsolete at This Point?

Online networking has grown in popularity due to its ease, convenience and practicality. The following are key reasons why back-and-forths via bandwidth can benefit your bottom line, specifically, and build your business, ... Read more »

Why Nobody is Reading Your Company Blog

It’s common for entrepreneurs, marketers and other business personalities to espouse the benefits of content marketing. They tell you to put together a great blog, optimize for some SEO keywords ... Read more »

Here are the top spots to shop for the winter vacation home of your dreams

A home in Breckenridge, Colorado. Michael Robinson | Corbis Documentary | Getty Images Ever since the Covid pandemic began almost two years ago, weary Americans hankering for a fun, but ... Read more »

Don't Take the Mantle of Giving Degrees on your Own: Chairman of AICTE Tells Edtech Startups

The University Grants Commission (UGC) and All India Council for Technical Education (AICTE) have warned their recognized varsities and institutions against “franchise” agreements with edtech companies offering courses in distance ... Read more »

Plant-Powered Future: 8 Trends in Vegan Meat, Egg and Dairy to Watch for in 2022

Another year in the books, another Veganuary. I think we can agree by now that veganism itself is not a trend — sales of plant-based food continue to grow rapidly. ... Read more »

Credit Suisse needs to salvage reputation after chairman quits in latest scandal, analysts say

The logo of Swiss bank Credit Suisse is seen at its headquarters in Zurich, Switzerland March 24, 2021.Arnd Wiegmann | Reuters LONDON — Credit Suisse Chairman Antonio Horta-Osorio resigned on ... Read more »

NIO stock rose last week: should I buy now?

Blue NIO sports car in Oslo showroom NIO (LSE: NIO) stock climbed last week, rising just under 7%. The main reason for this was some bullish electric vehicle (EV) coverage ... Read more »

NewsReach Raises Undisclosed Funding

NewsReach, an Ahmedabad-based digital media tech startup, has raised undisclosed funding. A consortium of investors like JITO Angel Network, Beyond Partners – Indian Micro VC firm, CIIE initiative startup oasis, ... Read more »

ZingHR Raises $10 Million From Tata Capital Funds

Cloudtech HR venture ZingHR has raised $10million from Tata Capital Funds. The funds will be  used for expansion into global markets, upgrading technology and scaling up its talent pool. Company handle “We ... Read more »

Binance Ties Up With Bangkok Billionaire on Thai Crypto Exchange

1 / 2Binance Ties Up With Bangkok Billionaire on Thai Crypto Exchange (Bloomberg) — Binance Holdings Ltd. reached an agreement with Thai billionaire Sarath Ratanavadi’s Gulf Energy Development PCL to ... Read more »

Finance Minister vows to raise accuracy in tax revenue

Finance Minister Hong Nam-ki speaks during a meeting with reporters at Government Complex Sejong, Monday. (Ministry of Economy and Finance)SEJONG — Deputy Prime Minister and Finance Minister Hong Nam-ki has ... Read more »

Number of self-employed falls by 18,000 in 2021

The posting at a retail store in Seoul on Jan. 5 notifies customers of its business closure. (Yonhap)SEJONG — The number of self-employed workers declined by 18,000 in South Korea ... Read more »

Entrepreneurs Are Leveraging the NFT World In the Name Of Polar Bears

Many buzzes have been created of late around the NFT space as projects associated with saving endangered species like polar bears are doing the rounds. Handout There have been quite ... Read more »

Kazakh Ex-Leader's Relatives Leave Key Posts After Deadly Riots

1 / 2Kazakh Ex-Leader’s Relatives Leave Key Posts After Deadly Riots (Bloomberg) — Two relatives of Kazakhstan’s leader-for-life Nursultan Nazarbayev left key posts as President Kassym-Jomart Tokayev continued to consolidate ... Read more »

U.K. Power Spikes Above £1,000 With Extreme Wind Lull

1 / 4U.K. Power Spikes Above £1,000 With Extreme Wind Lull (Bloomberg) — Most Read from Bloomberg Power prices for Monday evening surged to the highest in a month as ... Read more »

Chinese yuan could come under more pressure after surprise rate cut

Banknotes of Renminbi arranged for photography on July 3 2018 in Hong Kong.S3studio | Getty Images News | Getty Images China's central bank unexpectedly cut loan rates on Monday — a ... Read more »

Edwards Lifesciences (EW) Stock Sinks As Market Gains: What You Should Know

Edwards Lifesciences (EW) closed the most recent trading day at $118.26, moving -1.83% from the previous trading session. This change lagged the S&P 500’s daily gain of 0.08%. Meanwhile, the ... Read more »

First Solar (FSLR) Outpaces Stock Market Gains: What You Should Know

First Solar (FSLR) closed the most recent trading day at $83.02, moving +0.29% from the previous trading session. This change outpaced the S&P 500’s 0.08% gain on the day. Meanwhile, ... Read more »

Garage Sale Flipping Side Hustle

I love side hustles. And apparently — you do too. Zapier reports that one in three Americans — 34 percent — have a side hustle. Moreover, that number is likely ... Read more »

Okta (OKTA) Outpaces Stock Market Gains: What You Should Know

Okta (OKTA) closed the most recent trading day at $204.41, moving +1.19% from the previous trading session. This change outpaced the S&P 500’s 0.08% gain on the day. Elsewhere, the ... Read more »

Get a Jump on Tax Season by Learning Accounting Skills

Running your dream business is exciting. Turning a vision into a reality and seeing validation for your ideas — all while making money — is one of the greatest feelings ... Read more »

Transcript Gaps? A Strong College Application Remains Possible

Applying to college typically comes with some uncertainty, but this year’s applicants are tackling one additional question: What should you do when a pandemic has limited what goes into your ... Read more »

These Are The Top Ten Nontraditional Bond Funds

Nontraditional bond funds aim to avoid losses and earn a return that is uncorrelated with the overall bond market. Such funds deploy several strategies to achieve their objectives, such as ... Read more »

Banks Provide Mixed Start to Q4 Earnings Season

JPMorgan JPM and Citigroup C shares lost ground as they kick-started the Q4 earnings season for the banks. JPMorgan beat EPS estimates, but missed on revenues that were up +1.7% ... Read more »

Capital One (COF) Stock Sinks As Market Gains: What You Should Know

Capital One (COF) closed at $160.56 in the latest trading session, marking a -0.5% move from the prior day. This change lagged the S&P 500’s 0.08% gain on the day. ... Read more »

3 Steps to Make 2022 Your Best Tax Year Yet

The new year is here, which means tax season is right around the corner. In many ways, taxes became more complicated during the pandemic, with newly added exemptions and deductions, ... Read more »

Garmin (GRMN) Outpaces Stock Market Gains: What You Should Know

Garmin (GRMN) closed the most recent trading day at $132.38, moving +0.17% from the previous trading session. This change outpaced the S&P 500’s 0.08% gain on the day. Elsewhere, the ... Read more »

U.S. Regional Banks ETF (IAT) Hits a 52-Week High

iShares U.S. Regional Banks ETF IAT is probably a suitable pick for investors looking for momentum. The fund hit a 52-week high and is up 51.9% from its 52-week low ... Read more »

Volatility Playbook: 3 Stock Picks for Conservative Investors

Consider These 3 Low-Volatility Names in a Mixed Market How investors deal with volatility in markets is ultimately what will define their long-term success. We’ve recently been treated to some ... Read more »

Which Money-Making Strategy Is Right for You in 2022?

As we head deeper into 2022 at a breakneck pace, you might be thinking of ways to earn some extra cash this year. With inflation showing no signs of stopping ... Read more »

ShipNext Raises INR 4.5 Crore In Pre-Series A

ShipNext Solutions, India’s first end-to-end online logistics platform in the long haul segment, has raised INR 4.5 crore in its pre-series A round. Kerala-based Group Meeran, a family investment office ... Read more »

Unilever Plans Overhaul After Bids for GSK Consumer Unit

(Bloomberg) — Unilever Plc is promising to revamp its structure and plans to sell off slow-growth brands as it weighs making a higher offer for GlaxoSmithKline Plc’s consumer unit. Most ... Read more »

UK's Taylor Wimpey sees annual results in line with expectations

FILE PHOTO: A construction worker casts a shadow as he works on a Taylor Wimpey housing estate in Aylesbury (Reuters) -Taylor Wimpey, the UK's third-largest housebuilder, on Monday joined bigger ... Read more »

Chinese Developer Bond Rout Deepens on Hidden Debt Concerns

1 / 3Chinese Developer Bond Rout Deepens on Hidden Debt Concerns (Bloomberg) — Fresh turmoil rocked Chinese property bonds on Monday as investors fretted over the true scale of the ... Read more »

These 3 FTSE 100 stocks plunged in 2021. I'd buy all 3 today!

Businessman looking at a red arrow crashing through the floor Although 2021 was a positive year for the FTSE 100 index, the same can’t be said for all of its ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic