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.
For the rest of this Screen of the Week article please visit Zacks.com at: http://www.zacks.com/commentary/31269/
Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don't wait for the market to get better before you decide to do better. Start learning how to be a better trader today: http://at.zacks.com/?id=111
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here http://at.zacks.com/?id=112
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
SOURCE Zacks Investment Research, Inc.