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5 Incredible Value Stocks Trading with Ultra-Low PEG Ratios

Every investor is by now familiar with the reasons for the volatility in global equity markets. After all, much has been discussed about it, and a lot more has been anticipated. However, every effort to forecast the direction of this capricious market has gone in vain til now. For all we know, this market frenzy is here to stay.

This is because investors in the U.S. had been eyeing the domestic market as a safe haven for investing money backed by improvements witnessed in the labor, housing and auto markets, which signaled that the U.S. economy was poised to stand out amid the global upheaval.

However, The Federal Reserve's decision to delay the almost earmarked interest rate hike in September raised doubts over strength in the local economy and rattled investors' confidence, this in turn, heightened the volatility.

How Should Investors Brave the Turmoil?

Value investing is probably the most predictable investment style in the current market scenario. It is the safest style too.

One of the most sought-after value metrics is a stock's Price to Earnings Growth ("PEG") ratio. While a generally used Price to Earnings or P//E ratio tells you how much an investor is willing to pay for each unit of the company's earnings, a PEG ratio justifies the stock's value better by adding the growth factor to its earnings.

Notably, the PEG ratio reflects the price a stock commands for every unit of earnings growth. As such, a value of one or less is considered good (at par or undervalued to its growth rate), but a value of greater than 1, in general, is not desirable.

We believe that in confusing times like...


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