Tuesday, July 31, 2012

4 Quick Growing Financial Stocks At Discount Prices


If you are an investor who likes to hunt for bargains, but want to make sure you aren't picking up any duds, it is key to take a scrutinizing look before you buy. Today we focused on financial stocks. First we identified financial stocks that appear to be undervalued. From there, we culled those that have high projected earnings. The list today might surprise you, we hope you find it interesting.The PEG ratio (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company's expected growth. In general, the P/E ratio is higher for a company with a higher growth rate. Thus using just the P/E ratio would make high-growth companies appear overvalued relative to others. It is assumed that by dividing the P/E ratio by the earnings growth rate, the resulting
... Read the rest at SeekingAlpha.com

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