Friday, September 14, 2012

3 Low-Debt, Undervalued Small-Cap Stocks


When the price of a stock falls, one question to ask is whether or not the company has traits that point to resiliency. If it does, then it is likely that the drop in price is a temporary condition. Debt ratios can provide insight about a company's ability to recover. When a company has borrowed too heavily, it tends to impede resiliency and create barriers to growth. With this in mind, we developed a short list of small-cap stocks that appear to be undervalued and have minimal debt. Use the graphs and data below to see if any of these stocks spark your interest.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
... Read the rest at SeekingAlpha.com

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