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AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
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MU   67.57 (+4.08%)
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GE   104.01 (+0.52%)
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PFE   36.48 (-0.73%)
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NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)

Low PE Growth Stocks

This page lists companies that have unusually low price-to-earnings growth ratios (PEG ratios). The PEG ratio is a valuation metric for determining the relative trade-off between a stock's price, its earnings per share (EPS) and its expected earnings growth. It is calculated by dividing a stock's PE ratio by the earnings growth rate. PEG ratios are particularly useful in comparing the valuation of two stocks that have significantly different earnings growth rates. How to interpret PEG (price-to-earnings growth) ratios.

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CompanyCurrent PricePE RatioPEG RatioMarket CapVolumeAverage VolumeIndicator(s)
Bread Financial Holdings, Inc. stock logo
Bread Financial
3.270.08$1.53 billion455,315889,383Insider Buying
PDC Energy, Inc. stock logo
PDC Energy
2.770.12$5.68 billion430,745817,990Analyst Report
Insider Selling
Analyst Revision
News Coverage
Central Puerto S.A. stock logo
Central Puerto
13.130.13$914.46 million136,816205,250Short Interest ↓
Sylvamo Co. stock logo
9.540.14$1.76 billion412,778402,510Dividend Announcement
Scorpio Tankers Inc. stock logo
Scorpio Tankers
3.210.14$2.88 billion911,6161.48 millionAnalyst Report
Devon Energy Co. stock logo
Devon Energy
5.260.14$31.58 billion6.07 million9.48 millionAnalyst Report
Patterson-UTI Energy, Inc. stock logo
Patterson-UTI Energy
8.440.16$2.28 billion2.61 million3.46 millionAnalyst Report
Analyst Revision
Cal-Maine Foods, Inc. stock logo
Cal-Maine Foods
3.090.17$2.35 billion837,379983,209Analyst Report
Positive News
Loma Negra Compañía Industrial Argentina Sociedad Anónima stock logo
Loma Negra Compañía Industrial Argentina Sociedad Anónima
122.600.17$717.70 million115,001224,714Short Interest ↓
News Coverage
Delta Air Lines, Inc. stock logo
Delta Air Lines
12.170.18$23.07 billion9.73 million10.49 million
Ovintiv Inc. stock logo
1.980.19$8.28 billion2.84 million3.38 millionAnalyst Revision
Coterra Energy Inc. stock logo
Coterra Energy
4.860.19$19.28 billion11.13 million8.50 millionAnalyst Report
Short Interest ↓
Citizens Financial Group, Inc. stock logo
Citizens Financial Group
6.350.19$12.75 billion7.86 million7.48 million
Hudson Technologies, Inc. stock logo
Hudson Technologies
4.660.21$389.83 million398,376564,562Analyst Report
Short Interest ↓
First Hawaiian, Inc. stock logo
First Hawaiian
8.070.25$2.20 billion1.34 million896,212Analyst Report
ING Groep stock logo
ING Groep
9.510.26$48.56 billion2.87 million4.28 millionAnalyst Report
Short Interest ↑
Positive News
AutoNation, Inc. stock logo
5.530.26$6.20 billion372,957730,719Analyst Report
Short Interest ↓
Everest Re Group, Ltd. stock logo
Everest Re Group
22.390.27$14.83 billion1.57 million316,767Dividend Announcement
Analyst Report
Analyst Revision
News Coverage
High Trading Volume
Imperial Oil Limited stock logo
Imperial Oil
5.160.28$27.17 billion315,796445,229Analyst Report
Alaska Air Group, Inc. stock logo
Alaska Air Group
98.090.28$5.77 billion1.23 million1.62 millionAnalyst Report
Short Interest ↓
EZCORP, Inc. stock logo
21.460.29$487.70 million365,357568,456Analyst Report
Diamondback Energy, Inc. stock logo
Diamondback Energy
5.330.29$23.31 billion1.20 million2.26 millionAnalyst Report
Analyst Revision
Vertiv Holdings Co stock logo
53.200.30$6.06 billion4.90 million3.44 million
HSBC Holdings plc stock logo
6.850.30$152.84 billion1.74 million2.33 millionAnalyst Report
Cheniere Energy, Inc. stock logo
Cheniere Energy
4.540.30$34.48 billion1.36 million1.78 millionAnalyst Report
Lear Co. stock logo
17.610.30$7.34 billion322,087576,109Analyst Report
NatWest Group plc stock logo
NatWest Group
7.110.31$31.83 billion1.24 million1.70 million
Modine Manufacturing stock logo
Modine Manufacturing
15.960.31$1.12 billion242,856418,620Upcoming Earnings
Analyst Report
Chord Energy Co. stock logo
Chord Energy
3.450.31$6.05 billion384,055581,028Ex-Dividend
Analyst Report
Insider Selling
Analyst Revision
News Coverage
Positive News
EOG Resources, Inc. stock logo
EOG Resources
7.010.32$65.52 billion2.46 million3.62 millionAnalyst Report
Travel + Leisure Co. stock logo
Travel + Leisure
8.490.32$2.90 billion762,318724,760
Phillips 66 stock logo
Phillips 66
3.720.33$44.18 billion4.39 million3.60 millionAnalyst Upgrade
Macy's, Inc. stock logo
3.790.33$4.32 billion9.98 million10.05 millionAnalyst Report
Intercorp Financial Services Inc. stock logo
Intercorp Financial Services
6.490.34$2.57 billion17,74950,184
Graphic Packaging Holding stock logo
Graphic Packaging
12.820.34$7.87 billion1.70 million3.11 millionAnalyst Report
Southwest Airlines Co. stock logo
Southwest Airlines
29.960.34$17.83 billion7.21 million6.99 millionDividend Announcement
Analyst Report
Analyst Revision
Amcor plc stock logo
15.480.34$15.04 billion4.76 million8.07 million
Oshkosh Co. stock logo
20.000.34$4.95 billion414,703558,048Analyst Report
Veritiv Co. stock logo
4.820.34$1.51 billion154,928131,467Analyst Report
Asbury Automotive Group, Inc. stock logo
Asbury Automotive Group
4.900.34$4.49 billion111,253243,455Analyst Report
Positive News
Halliburton stock logo
13.830.35$26.95 billion10.85 million9.43 millionDividend Announcement
Analyst Report
Short Interest ↑
Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México stock logo
Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México
5.060.36$7.41 billion028,664Analyst Report
Nomura Holdings, Inc. stock logo
17.290.36$10.95 billion2.62 million938,796Analyst Report
High Trading Volume
LPL Financial Holdings Inc. stock logo
LPL Financial
15.110.36$15.28 billion768,202917,257Analyst Report
Analyst Revision
Thorne HealthTech, Inc. stock logo
Thorne HealthTech
23.050.36$235.91 million19,23548,069
Wintrust Financial Co. stock logo
Wintrust Financial
7.600.37$4.06 billion741,415575,203Analyst Upgrade
Positive News
The Lovesac Company stock logo
13.430.38$359.33 million391,143480,132News Coverage
Western Alliance Bancorporation stock logo
Western Alliance Bancorporation
4.020.38$3.85 billion6.56 million7.69 millionAnalyst Report
Marathon Oil Co. stock logo
Marathon Oil
5.660.39$14.03 billion9.92 million10.57 millionAnalyst Report
Analyst Revision
Afya Limited stock logo
14.480.40$1.09 billion280,114255,210Upcoming Earnings
Short Interest ↓
Sociedad Química y Minera de Chile S.A. stock logo
Sociedad Química y Minera de Chile
5.320.40$20.79 billion2.10 million1.91 millionAnalyst Report
News Coverage
ORIX Co. stock logo
10.410.41$20.96 billion48,17224,947
Hibbett, Inc. stock logo
5.280.41$646.43 million161,836261,640Short Interest ↑
Livent Co. stock logo
15.670.41$4.56 billion3.56 million3.30 millionAnalyst Revision
Range Resources Co. stock logo
Range Resources
3.460.42$7.12 billion7.51 million4.74 millionAnalyst Report
Insider Selling
Negative News
Hudson Global, Inc. stock logo
Hudson Global
13.780.42$55.20 million1,8297,524Gap Down
KB Financial Group Inc. stock logo
KB Financial Group
4.400.42$14.99 billion260,043231,631Analyst Report
Credicorp Ltd. stock logo
8.450.43$10.25 billion249,289404,333Analyst Report
Gap Down
Terex Co. stock logo
9.280.44$3.30 billion591,133992,436Dividend Announcement
Analyst Report
Analyst Revision
CI&T Inc stock logo
19.450.44$468.34 million143,45248,016Upcoming Earnings
News Coverage
Gap Up
High Trading Volume
CI Financial Corp. stock logo
CI Financial
7.720.45$1.72 billion39,18141,946Analyst Downgrade
Gap Down
Honda Motor Co., Ltd. stock logo
Honda Motor
9.430.45$48.39 billion612,7581.05 millionAnalyst Report
Perdoceo Education Co. stock logo
Perdoceo Education
8.630.45$826.88 million284,531385,551Analyst Report
Interactive Brokers Group, Inc. stock logo
Interactive Brokers Group
17.130.45$31.78 billion940,5771.15 millionAnalyst Report
Positive News
Medical Properties Trust, Inc. stock logo
Medical Properties Trust
15.560.46$4.65 billion12.77 million15.39 millionAnalyst Report
Positive News
Deluxe Co. stock logo
11.610.46$681.02 million215,511224,415Analyst Report
Charter Communications, Inc. stock logo
Charter Communications
11.260.46$52.45 billion1.00 million1.11 millionAnalyst Report
MINISO Group Holding Limited stock logo
32.000.47$5.05 billion1.39 million1.48 millionNews Coverage
O-I Glass, Inc. stock logo
O-I Glass
4.890.47$3.35 billion1.01 million1.20 millionAnalyst Report
Options Volume
General Motors stock logo
General Motors
5.090.48$45.73 billion14.11 million15.05 millionAnalyst Report
Townsquare Media, Inc. stock logo
Townsquare Media
20.880.48$155.62 million120,07029,126Analyst Report
High Trading Volume
Herc Holdings Inc. stock logo
9.510.48$3.06 billion362,639376,380Dividend Announcement
Analyst Report
Short Interest ↓
PulteGroup, Inc. stock logo
6.040.48$15.66 billion2.70 million2.78 millionAnalyst Report
Options Volume
Exxon Mobil Co. stock logo
Exxon Mobil
7.160.49$427.63 billion11.97 million16.41 millionEx-Dividend
Analyst Report
Schlumberger Limited stock logo
16.670.49$63.70 billion8.37 million9.65 millionAnalyst Report
Occidental Petroleum Co. stock logo
Occidental Petroleum
6.670.49$51.94 billion11.21 million12.79 millionAnalyst Report
Insider Buying
Analyst Revision
Schneider National, Inc. stock logo
Schneider National
10.120.49$4.69 billion294,853587,770Positive News
ChampionX Co. stock logo
31.480.50$5.48 billion997,3711.56 millionDividend Announcement
Revvity, Inc. stock logo
17.460.50$14.66 billion812,163848,773
United Rentals, Inc. stock logo
United Rentals
11.050.50$23.69 billion811,766919,569Analyst Report
Analyst Revision
Positive News
Perion Network Ltd. stock logo
Perion Network
14.200.51$1.45 billion1.18 million764,263Analyst Report
Harmony Biosciences Holdings, Inc. stock logo
Harmony Biosciences
11.570.52$2.15 billion352,580830,492Positive News
East West Bancorp, Inc. stock logo
East West Bancorp
5.800.52$7.00 billion1.25 million1.59 millionAnalyst Report
Core Laboratories stock logo
Core Laboratories
42.520.52$992.42 million371,007354,082Analyst Report
PVH Corp. stock logo
29.360.52$5.46 billion648,282966,866Analyst Report
ConocoPhillips stock logo
8.060.53$121.90 billion5.50 million6.43 millionAnalyst Report
Short Interest ↓
Analyst Revision
Magna International Inc. stock logo
Magna International
34.540.53$15.02 billion3.48 million1.24 millionAnalyst Report
High Trading Volume
Victoria's Secret & Co. stock logo
Victoria's Secret & Co.
6.400.53$2.07 billion1.28 million1.50 million
Haynes International, Inc. stock logo
Haynes International
10.970.53$573.74 million36,98872,827Analyst Report
Halozyme Therapeutics, Inc. stock logo
Halozyme Therapeutics
25.420.53$4.38 billion807,4141.51 millionAnalyst Report
Canada Goose Holdings Inc. stock logo
Canada Goose
42.560.54$1.91 billion12.52 million1.96 millionAnalyst Report
Options Volume
News Coverage
Gap Up
High Trading Volume
Sendas Distribuidora S.A. stock logo
Sendas Distribuidora
14.630.55$3.08 billion435,406488,685News Coverage
Computer Task Group, Incorporated stock logo
Computer Task Group
21.530.55$102.71 million12,24330,583Analyst Report
Analyst Revision
Compañía Cervecerías Unidas S.A. stock logo
Compañía Cervecerías Unidas
23.960.56$3.05 billion50,688141,369Short Interest ↓
News Coverage
Air Lease Co. stock logo
Air Lease
9.490.56$4.34 billion456,682582,629Analyst Report
Ultrapar Participações S.A. stock logo
Ultrapar Participações
12.540.57$3.91 billion1.02 million1.52 millionAnalyst Report
Torrid Holdings Inc. stock logo
6.230.57$310.45 million188,155171,560News Coverage
Richardson Electronics, Ltd. stock logo
Richardson Electronics
9.700.57$256.30 million227,881187,948Analyst Report
Liberty Energy Inc. stock logo
Liberty Energy
4.180.58$2.23 billion1.81 million2.98 millionShort Interest ↓
Positive News
Prudential Financial, Inc. stock logo
Prudential Financial
915.440.58$30.07 billion2.34 million2.31 millionAnalyst Report
What is the price-to-earnings growth (PEG) ratio?

The PEG Ratio takes into a stock’s present and future earnings outlook

One of the key ratios that investors use to decide if a stock is correctly valued is the price-to-earnings (P/E) ratio. In simple terms, the P/E ratio tells an investor how much they are paying to purchase $1 or a company’s earnings.

However, while the P/E ratio can show a company as a good investment, it doesn’t take into account future earnings. This is why many investors have come to supplement the P/E ratio with another measurement tool the price-to-earnings growth (or PEG) ratio. This ratio takes into account a company’s future earnings growth to give a more accurate picture of a stock’s valuation.

In this article we’ll define the PEG ratio and provide examples, we’ll also review how to interpret the PEG ratio and review some of the limitations of this ratio. But first, we’ll review what the P/E ratio is and the limitations that may make the PEG ratio a more relevant option.

The P/E ratio is a measurement of how much an investor is paying to buy $1 of a company’s earnings or profit. To calculate the P/E Ratio you simply divide the stock price by the earnings per share:

For example, if a company is reporting earnings of $3 per share and their stock is selling for $30 per share, the P/E ratio is 10 ($30 per share/$3 per share).

Legendary investment manager Peter Lynch once wrote “The P/E ratio of any company that’s fairly priced will equal its growth rate”. Certainly, a stock’s price-to-earnings ratio (P/E ratio) is widely considered a reasonably accurate measure of a company’s valuation, and can sometimes be used as a way of comparing one company against another.

While there is no “standard” P/E Ratio for all stocks and sectors, investors can generally find that different industries will have different “standard” P/E ratios. For example, it’s not uncommon to find technology companies with a P/E ratio of 20 or higher. This is due in part to the fact that these companies include many growth stocks that historically increase share price and EPS at a faster rate than the broader market.

By contrast, financial services companies might have P/E ratios in the low teens. For investors this means rather than one-size-fits-all, the objective is to ensure that two companies in the same industry have a similar P/E ratio.

However, if all companies in a particular sector begin to have P/E ratios that are abnormally high or low (based on their historical pattern) it may indicate that the stock is overvalued or undervalued. For example, in the months leading up to the real estate crash of 2007, the P/E ratio of real estate stocks soared. A similar phenomenon occurred before the tech stock crash in the early 2000s.

The primary limitation of P/E ratio is that it is limited to a moment in time. It gives you an accurate assessment of where one company compares to another at that moment. However, to get a more accurate view of whether a stock is overvalued or undervalued requires knowledge of the anticipated growth rate between the two companies.

For example, let’s use a hypothetical example. Let’s say company ABC has a P/E of 30 and an anticipated growth rate of 50%. Then say that company XYZ has a P/E of 20, and an anticipated growth rate of 5%. Just by looking at the P/E ratio, company ABC looks undervalued. However, if company XYZ is in a mature phase of its business, then company ABC is a better choice for growth-oriented investors.

This limitation spawned the need for a new metric. Specifically the ratio of the P/E to growth (or PEG). The formula for PEG is as follows:

If you were to put this formula into a sentence, it would say that the PEG ratio is a calculation that helps investors determine whether a stock’s price is overvalued or undervalued by not only looking at their current earnings, but also looking at their expected future earnings growth.

To test Lynch’s theory, PEG would imply that if a company had a “Fair P/E ratio” than it should have a PEG of around 1.

PEG is particularly important for certain growth stocks that may historically have periods of higher and lower growth when compared to the overall stock market. These stocks may have a forecasted EPS growth rate that supports a P/E ratio that would make a stock seem overvalued. Likewise, a PEG ratio for a mature company may show that what many investors consider to be a fair P/E ratio is actually indicative of a stock that is overvalued.

However, like other ratios, the PEG ratio is most helpful when comparing a stock price to others in its industry or sector. Some sectors, such as technology, may have much higher future earnings growth.

The accepted rule among investors is that a PEG of greater than 1 indicates a stock price that is too high based on expected earnings growth. A PEG of less than 1 indicates a stock that is undervalued based on projected earnings growth.

While it’s true that the P/E ratio is a multiple and the PEG is a percent, it’s important to focus on the true objective and that is to determine whether a stock is properly valued. To that end, many investors believe the PEG is more accurate than simply looking at a company’s P/E ratio when determining proper valuation.

For example, by definition, a high P/E ratio typically signals to investors that a stock is overvalued. However, if the company has high growth estimates, than calculating the PEG can show a very different picture, and one that could suggest the stock is still a buy. In our earlier example, investors may consider a company with a P/E ratio of 30 to be overbought. But if the company is forecasting a growth rate of 50% than its PEG ratio tells a different story.

In this case, the PEG number suggests one of two things. One that analysts are setting their expectations too low. And second that analysts are overvaluing the stock’s growth. In either case, the ratio suggests the stock has room to grow.

The opposite is also true. If a company has a P/E range of 8 which may be lower than expected or lower than others in its sector, the assumption could be that the stock is undervalued. However, a closer look may indicate that the company is expecting only about 5% for the growth for the year. While that growth rate is certainly not poor when you perform the PEG calculation you come up with:

In this case, the company may very well have a difficult time increasing their share price above its current level.

One of the basic limitations of PEG is that even though it does forecast future growth it still only measures that future growth in the context of that moment. It also does not provide a context for the growth number. For example, that growth could be due to a one-time event. Also, when compared with other analysis tools such as a discounted cash flow analysis, the PEG ration tends to undervalue the companies with the highest growth rates.

Another limitation of the PEG ratio is how future growth is calculated. If the company uses projected growth, it may significantly different (and easier to manipulate) than if they were to use historical data.

However, these limitations make the PEG ratio no different than other ratios or metrics. Every investor needs to use more than one measurement tool to get a complete picture of a stock’s valuation. For example, looking at a company’s balance sheet over the course of several quarters can give investors a better look at trends having to do with their revenue growth or free cash flow.

The P/E growth ratio (or PEG) was developed and is used as a refinement of the standard P/E ratio that is used in fundamental analysis. The PEG ratio factors in a company’s forecasted growth potential either using historical data (meaning its backward looking) or using projected growth numbers (forward-looking). The formula for the PEG ratio is as follows:

Just like a P/E ratio, there is no “standard” for what constitutes a good PEG ratio. Some industries will have a “typical” PEG ratio that would seem high or low for another sector. In general, however, a P/E ratio that is around 1 is said to indicate a fair valuation for a stock. So for example, a stock that has a P/E ratio of 20 with a forecasted growth rate 20 percent would have a PEG ratio of 1.

A PEG ratio above 1 will typically indicate an overvalued stock and a PEG ratio of less than 1 will typically be an indication that a stock is undervalued.

Like any fundamental analysis ratio, the PEG has limitations, the largest being that it is only predictive of the current time period. For example, a company may project 20% growth for the following year, but even if it achieves that growth there is no indication that it will continue to grow at that pace. Nor does the PEG ratio provide a context for the growth figure. Also, the growth projections used for the PEG ratio can be determined using past growth data. While accurate in the sense that it is based on an actual, not projected, number it can be higher or lower than the rate of growth the company is currently experiencing. Despite these limitations, the PEG ratio is still considered to be a good baseline test of valuation.

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