Zacks.com featured expert Kevin Matras highlights: Canadian Solar, Methanex, Royal Caribbean Cruises, Sabra Health Care REIT and Trinity Industries
CHICAGO, Feb. 12, 2014 /PRNewswire/ -- Stocks in this week's article include: Canadian Solar (NASDAQ: CSIQ – Free Report), Methanex (NASDAQ: MEOH – Free Report), Royal Caribbean Cruises (NYSE: RCL – Free Report), Sabra Health Care REIT (NASDAQ: SBRA – Free Report) and Trinity Industries (NYSE: TRN – Free Report). Kevin Matras compares the PEG ratio to the P/E ratio and shows how to use them both for finding classically undervalued stocks with market beating growth rates.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
Which valuation metric is better: the PEG ratio or the P/E ratio?
They both have their usefulness. I do like how the PEG positions the P/E ratio in relation to its growth rate to put everything into perspective.
Quite frankly, I use both. Plus, you couldn't even create the PEG ratio without the P/E.
But, you don't have to choose one or the other. You can use both. And that's how we're using it in this week's screen.
This screen will find stocks with market beating growth rates, yet still be considered undervalued on two of the most effective valuation markers. And of course, with the Zacks Rank added to it, they will be experiencing upward earnings estimate revisions, which provides a timely catalyst for the stock to move.
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