When it comes to bargain shopping, we all hope that we are getting a great deal. Unfortunately, there are those unavoidable instances when you bring home an item that is on clearance for good reason. To avoid that dilemma when considering stocks, it is helpful to employ discernment. We took a look at small cap industrial stocks that appear to be undervalued after analyzing their growth rate. Additionally, they all have significant cash reserves. This is an indicator that the included companies have the necessary resources to realize those growth projections, cover expenses and follow through on strategic goals.
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
... Read the rest at SeekingAlpha.com
No comments:
Post a Comment