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
-
The fact is that there are many interesting high-yielding companies that have good long-term prospects. Besides, as the markets get more vol...
-
A common measure of dividend sustainability is the payout ratio, the percent of earnings that are paid out to shareholders. Unfortunately, e...
-
Part of the joy of investing is seeing your good investments continue to grow, years after your initial purchase. Aside from the financial s...
-
Good income investments often come with strong dividend yields, delivering income that's higher than an investor could find at a bank or...
-
A lot changes when you shift from working to retirement, including how you invest. Most investors switch from building a nest egg to living ...
-
Last month we wrote about the top four companies in our model portfolio in the article 4 Dividend Dominators for 2021 - Companies With More ...
-
Both of the listed stocks are often discussed on the Reddit page, and for very different reasons. The former pays a frequent special dividen...
-
Interest rates remain very low and given the ongoing economic impact from COVID-19, they will likely stay very low. This low-rate environmen...
-
When it comes to dividend stocks, investors can fall into the trap of focusing on dividend yield over all else. That can be a dangerous stra...
-
Safety and tranquility are both important aspects of investing for retirement. Yes, we want stocks with meaningful upside. We also -- howeve...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.