If you like to use a company’s P/E ratio to determine its value, then you’ll love using the PEG Ratio Profit Track. The PEG Ratio can calculate if a stock is undervalued relative to its expected future growth. Find out which companies offer the greatest value regardless of growth rate to enjoy stellar returns. Four stocks meeting this screen’s exclusive criteria are: BHP Billiton Ltd. (NYSE: BHP), Dril-Quip, Inc. (NYSE: DRQ), LG Philips (NYSE: LPL), Tele Norte Leste Participacoes S.A. (NYSE: TNE). View the entire list of stocks for the PEG Ratio Profit Track at http://at.zacks.com/?id=1837
Here are details about four companies currently identified by the PEG Ratio Profit Track:
BHP Billiton Ltd. (NYSE: BHP) is in fairly exclusive territory as a Zacks Rank #1 Stock with a PEG ratio of .28, making the company an excellent selection for this profit track. The company has had an outstanding year in which its stock price almost doubled in value, moving from $36 per share to its current reading of just below $72. It is very unique to see a company with these kinds of growth characteristics carrying such a low PEG ratio. The analyst community remains bullish on the stock, with one of three covering analysts increasing both current-year and next-year estimates within the last seven days.
Dril-Quip, Inc. (NYSE: DRQ) announced third-quarter earnings per share of 67 cents on total revenues of $130.4 million. EPS advanced year over year from 58 cents and also beat the consensus by more than 6.3%. Total revenues advanced 11% from the previous year's $117.8 million. The manufacturer of highly-engineered offshore drilling and production equipment attributed its solid results to strong worldwide demand for its products and services. Earnings estimates for this year are up approximately 2% in the past two months. With a PEG Ratio of 0.46, Dril-Quip qualifies for this profit track and appears to be an attractively-priced stock with room for further growth.
LG Philips (NYSE: LPL) is a Zacks Rank #1 Stock operating in a Zacks Industry Rank #8 out of 218, that is currently carrying a PEG ratio of .41, a very impressive list of credentials by any standard. 2007 proved to be an exceptional year for the company’s investors, with prices bottoming out at less than $14 per share and eventually climbing over the $30 level, which represents more than a 100% return. On Oct 9, the company reported its best quarterly results in over three years on strong sales and higher prices for its products, making its valuations even more attractive to potential investors.
Tele Norte Leste Participacoes S.A. (NYSE: TNE) rounds out our current list with an equally impressive set of data: A Zacks Rank #1 Stock operating in a Zacks Industry Rank #28 out of 218, with a PEG ration of just .44. The company’s investors have been rewarded very nicely this year, with prices dipping below $12 per share and currently on pace to close above $20. In spite of the excellent run-up, the analyst community remains bullish on the company. Within the last seven days one analyst has increased both current-year and next-year estimates. Within the last 30 days half of the covering analysts have increased both current-year and next-year estimates. The current-year estimate has tacked on an additional 34 cents, moving to its current reading of $2.59 per share.
Discover all the current stocks currently on the PEG Ratio Profit Track at: http://at.zacks.com/?id=1868
About Profit Tracks
What is a "Profit Track"? Each Profit Track is a successful stock picking strategy with proven results through the Bear Market of 2001-2002 and the Bull run started in 2003. On Zacks.com we have created these nine unique screens to offer investors great strategies to potentially outperform the market in the years ahead. In 2006, the Low Price Stocks strategy was the top performing Profit Track with a return of +56.5% followed by the Discounted Fundamental screen with a +34% return. To see all nine strategies along with philosophy, past performance and current stocks, go to http://at.zacks.com/?id=1838
All the Profit Track strategies were created and backtested using the Research Wizard software from Zacks Investment Research. If you like this screening strategy, but want to narrow down the list of stocks and even improve the performance, then you should start a free trial to this powerful stock picking tool. Learn more about the Research Wizard free trial offer and our new special report “Top 10 Stock Screening Strategies” at http://at.zacks.com/?id=2156
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