When the stock market was in nearly nonstop rally mode for most of the past six years, investors didn't need to look far to uncover an abundance of growth stocks. But not all growth stocks are created equal: While some appear poised to deliver extraordinary gains going forward, the recent market turbulence has crushed some that were overvalued, burdening investors with hefty losses.
What exactly is a growth stock? I'll define a growth stock as any company forecast to grow profits by 10% or more annually during the next five years -- although that's an arbitrary number. To decide what's "cheap," I'll use the PEG ratio, which compares a company's price-to-earnings ratio to its future growth rate. Any figure around or below one could signal a cheap stock. Here are three companies that fit the bill: Interface (NASDAQ:TILE), Kimball International (NASDAQ:KBAL) and Centene (NYSE:CNC).
Source: Motley Fool
Related Articles:
- 5 Low P/E Value-Stocks, Yielding 2% Or Higher
- How Much Money Will You Need To Retire?
- Seeding A Forest Of Dividend Growth Stocks
- 7 Stocks With A Strong Cash To Dividend Coverage
- Optimizing Your Asset Allocation
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
How do you assess risk? Different investors have different approaches, and when a Black Swan event topples the market, risk assessment becom...
-
Today, we’ll look at three high-yield dividend stocks that have earned a ‘perfect 10’ from the Smart Score. For investors seeking a clear fo...
-
Many companies have been suspending their dividends during the COVID-19 crisis, and in many cases it is understandable. In times of economic...
-
With the price of oil rebounding, I wanted to find five cheap energy stocks that have solid dividend yields. In other words, the dividends a...
-
While near-term fluctuations in the stock market can be unpredictable, dividends are one of the few reliable sources of market returns. Stoc...
-
AbbVie (NASDAQ:ABBV) is in the midst of a transition. AbbVie began life about a decade ago when it was spun off from health care and medical...
-
3M Company (NYSE:MMM) is growing its FCF very well, and as a result, MMM stock is likely to move up at least 44% over the next or so. Right ...
-
“Research shows that dividend cuts are associated with significant share price declines on announcement,” Cornell University Professor of Fi...
-
Dividend investing is a great way for investors to earn reliable income. Dividend stocks tend to have stable, cash-generating business model...
-
With interest rates at historic lows and bond-yields heading down quickly, the payouts from dividend stocks are becoming more and more appea...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.