7 Low PEG Large Cap Stocks to Consider for May 2021


Introduction

Low PEG Ratio stocks can offer good values with reasonable growth prospects. This was one of the favorite metrics used by Peter Lynch of the Fidelity Magellan fund. When applied to the large cap stocks, this is likely to return us names that may be temporarily mis-valued. Although chances of finding great undervalued stocks this way are not very good, the stocks that we do find have other qualities that may make them appropriate for consideration

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large cap low peg stocks

Screen Details

This screen looks for large cap stocks above $5 billion in market capitalization with good valuation based on Book Value and Earnings multiples and a low PEG ratio. A PEG ratio under 1 is considered low. Dividends and other attributes are of no consideration in the screening (although you will look at other attributes in your further due diligence):

  • PEG ratio, forward <  1
  • PEG ratio, trailing < 1
  • Price/Book Ratio < 2
  • Price/Earnings Ratio < 12
The screen was run with the Stock Rover screener, and we found 7 stocks listed on the American exchanges that fit this criteria. You can download the filter criteria here so you can import it in your Stock Rover account and run it yourself as you need. Don’t have a Stock Rover account? Sign up here for a 2 week free trial

The Screen Results

Stock

Company

PEG Forward

P/B Ratio

P/E Ratio

ACGL

Arch Capital Group

0.2

1.3

9.8

GS

Goldman Sachs Group

0.5

1.3

9.1

JEF

Jeffries Financial Group

0.5

0.9

7.6

LEN

Lennar

0.9

1.8

10.8

MKL

Markel

0.6

1.3

6.0

SBSW

Sibanye Stillwater

0.8

1.7

TX

Ternium

0.1

1.0

5.3

Notes and Observations

At this time Lennar appears to be an interesting possibility. The residential real estate market is tight and there appears to be a significant pent up demand for new housing. I will be considering this stock further.





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