Introduction
PEG ratio can be used to find a balance between value and growth. The legendary Peter Lynch of the Fidelity Magellan fund popularized Growth at Reasonable Price (or GARP) filters. PEG ratio offers a way of finding stocks that has a great balance of value and growth characteristics.
Screen Details
This screen looks for small cap stocks between $30 million and $2 Billion in market capitalization. Other parameters include:
- PEG (Forward) < 1
- PEG (Trailing) < 1
- Price/Book < 2, and,
- Price/Earnings < 12
The screen was run with the Stock Rover screener, and we found 28 stocks listed on the American exchanges that fit this criteria.
The Screen Results
Stock | Company | ​P/e Ratio​ | PEG forward | P/S ratio | P/B ratio |
|---|---|---|---|---|---|
AGM | Federal Agricultural | 9.5 | 0.9 | 4.8 | 1.7 |
BBAR | BBVA Banco Frances | 5.7 | 0.1 | 0.7 | 0.9 |
BMA | Banco Macro | 0.4 | 0.1 | 0.1 | - |
CNR | Cornerstone Building | 6.9 | 0.3 | 0.2 | 0.9 |
CPE | Callon Petroleum | 4.2 | 0.2 | 1.5 | 0.4 |
CRZO | Carrizo Oil & Gas | 1.3 | 0.1 | 0.7 | 0.6 |
CVGI | Commercial Vehicle Group | 5.9 | 0.5 | 0.3 | 1.8 |
DFIN | Donnelley Financial Solutions | 6.1 | 0.9 | 0.4 | 1.6 |
FLY | Fly Leasing | 4.5 | 0.3 | 1.5 | 0.9 |
FMNB | Farmers National Banc | 11.9 | 0.7 | 3.8 | 1.4 |
GTN | Gray Television | 10.1 | 0.7 | 1 | 1.3 |
HOFT | Hooker Furniture | 9.2 | 0.5 | 0.4 | 1 |
HOLI | Hollysys Automation | 7.1 | 0.4 | 1.6 | 0.9 |
HOME | At Home Group | 9.4 | 0.8 | 0.5 | 0.7 |
HZO | MarineMax | 10.2 | 0.4 | 0.3 | 1.1 |
KELYA | Kelly Services | 8.3 | 0.7 | 0.2 | 0.7 |
MHO | M/I Homes | 10.5 | 0.7 | 0.5 | 1.3 |
NTWK | NETSOL Technologies | 6.8 | 0.3 | 0.9 | 1 |
PDCE | PDC Energy | 11.5 | 0.3 | 0.9 | 0.6 |
PRTY | Party City Holdco | 5.4 | 0.4 | 0.3 | 0.6 |
RM | Regional Management | 10.4 | 0.3 | 1.3 | 1.2 |
SBBX | SB One Bancorp | 10.4 | 0.9 | 2.9 | 1.1 |
SBOW | SilverBow Resources | 0.7 | 0.3 | 0.3 | 0.3 |
SRCI | SRC Energy | 3.3 | 0.7 | 1.2 | 0.5 |
TBBK | The Bancorp | 11.6 | 0.9 | 2.6 | 1.3 |
TCS | Container Store Group | 9.8 | 0.8 | 0.3 | 0.9 |
TVTY | Tivity Health | 9 | 0.7 | 0.8 | 1.4 |
VHI | Valhi | 3.3 | 0.2 | 0.3 | - |
XELB | Xcel Brands | 11.2 | 0.3 | 0.8 | 0.3 |
Notes and Observations
- AGM: AGM offers a nice 3.3% dividend yield. As a farm sector mortgage company, the business should be resilient in a recession, if the trade war concerns are alleviated
- BBVA and BMA: Both companies are based in Argentina and are subject to the country risk
- CPE, CRZO and PDCE: Oil and gas companies currently in the cyclical doldrums. Heavy short interest
- CVGI: Automotive, worth a look
- DFIN: High debt, low cash, avoid
- HOFT: Financials appear strong. Worth a look
- KELYA: Strong financials, worth a look
- XCEL: Retail, with some strong brands. May want to take a look.
Ending Note
There are a number of candidates for further research. Please do your due diligence. I will post reviews of the ones that I find interesting enough to explore further.
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