5 Profitable Financial Stocks That Appear Undervalued

Though many investors are rightfully wary of investing in the financial sector, there are still some companies that are well run and worthy of a second look. One way to reduce risk is to concentrate on those that have maintained profitability during market fluctuations. Our list today identifies financial stocks that have produced solid profits and also appear to be trading at a discount when measured against growth in earnings. We think you may be inspired to do additional research.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
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