Sunday, May 13, 2012

6 Undervalued, Low Debt Mid Cap Stocks


Are you looking for mid-sized companies that still have room to grow and are undervalued? Do you look for companies with low debt and manageable long term debt? For ideas on how to start your search, we ran a screen you may find helpful.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 ratio is better for comparing companies with different growth rates. A lower ratio is 'better' (cheaper) and a higher ratio
... Read the rest at SeekingAlpha.com

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