low-peg-stocks.jpgBlue Chips Stocks with low PEG Ratio

The PEG Ratio is a very good indicator to evaluate stocks. It says that a stocks PE should be lower than a stocks growth rate (EPS-Growth-Rate for the next 5 years). If that's the case, the PEG Ratio is below 1 and hence you are not paying too much for a company's growth. And there are even more benefits! Only profitable companies have a PE. Therefore stocks with losses or with phantasy PE's of 100 are not showing up, because their PEG is not under 1. Stocks with low PE and low PEG-Ratio usually outperform the market over the long run because you are not paying too much for what you get!

The list shows a selection of international Blue Chip Companies with a PEG Ratio under 1. These are cheap growth stocks. At the moment financials, materials and auto companies are dominant on the list. Are these low-peg-stocks a bargain or is the growth expectation for the future just too high? Make up your own decision!

Data as of 2015-01-30 (financial information only, no buy recommendation)

Name Ticker PE Fwd
PE
PEG P/B EPS
this y

EPS
next y

EPS
past 5y
EPS
next 5y
ArcherDanielsMidland ADM 16.41 13.72 0.87 1.54 92% 13% -5% 19%
Aegon AEG 17.17 9.24 0.32 0.65 -56% 56% 18% 53%
Best Buy BBY 12.4 14.59 0.78 2.77 242% 1% -4% 16%
Comcast CMCSA 16.94 16.28 1 2.61 10% 10% 24% 17%
Discovery Commun. DISCA 14.09 14.97 0.67 2.27 19% 17% 28% 21%
Ford F 9.71 9.18 0.95 2.19 24% 45% 18% 10%
Gilead GILD 18.44 10.58 0.55 11.63 10% 25% 12% 33%
Honda Motor HMC 10.49 9.4 0.96 1.04 56% 7% 33% 11%
ING Groep ING 11.06 9.09 0.86 0.88 123% 19% 23% 13%
Itau Unibanco ITUB 8.94 8.43 0.51 1.99 30% 1% 20% 18%
Korea Electric Power KEP 11.63 2.69 0.47 0.51 102% 273% 15% 25%
Michael Kors KORS 19.09 14.96 0.94 6.61 64% 16% 130% 20%
Kyocera Corp. KYO 21.33 20.73 0.85 0.94 33% 3% 25% 25%
Southwest Airlines LUV 28.65 13.47 0.71 4.69 55% 11% 66% 41%
Lyondell-Basell LYB 9.14 9.63 0.97 4.02 36% -5% 20% 9%
Magna MGA 11.61 9.85 0.71 2.25 11% 12% 109% 16%
Morgan Stanley MS 11.61 10.55 0.79 0.99 115% 14% 43% 15%
Micron MU 9.65 7.18 0.64 2.72 125% 14% 25% 15%
Royal Caribbean RCL 26.11 16.09 0.96 1.91 45% 38% -4% 27%
Ryanair Holding RYAAY 23.62 13.76 0.62 3.78 -6% 26% 39% 38%
Toyota Motor TM 12.65 10.13 0.38 1.61 89% 12% 44% 34%
Tyson Foods TSN 16.75 11.18 0.88 1.72 3% 6% 29% 19%
Tata Motors TTM 10.46 9.96 0.52 2.49 46% 11% 18% 20%
United Continental UAL 26.35 7.39 0.45 7.08 92% 4% 22% 59%
UBS AG UBS 16.2 13.37 0.99 1.27 225% 15% 16% 16%
Valero VLO 7.31 10.16 0.43 1.33 33% -15% 34% 17%
Whirlpool WHR 21.67 14.17 0.95 3.08 102% 30% 13% 23%