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
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Posted by D4L | Wednesday, March 16, 2016 | ArticleLinks | 0 comments »________________________________________________________________
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