This screen looks for small cap stocks above $30 million and less than $2 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
Notes and Observations
We have had a good amount of correction in valuation for most stocks in the recent months and as a result there are many stocks that look cheap. These stocks run the gamut from financial to technology sectors and everything in between. There are some names that are immediately interesting to me and I will be conducting further research on these and post as appropriate. At this time, my focus is on businesses with tangible assets that can retain value and continue growth in a high inflation period.
Image and article originally from valuestockguide.com. Read the original article here.