Page 3 - Peg Ratio News Today

One of the biggest challenges which manufacturing companies and too large ones face is the right allocation of capital. The reason, they go through various economic and business cycles where they face both the problem of plenty and scarcity of capital at different points of time. When a metal company starts making money, it mints money. Post that what it does --buy more mines, expand capacity or retire debt -- will determine its future. When looking at manufacturing companies, look carefully ...

DVA, LZ and MPTI made it to the Zacks Rank #1 (Strong Buy) growth stocks list on December 22, 2023.

Financial sectors stocks tend to do well, where there is inflow from foreign portfolio investors, the reason, it is their preferred sector for taking exposure to the Indian market for decades as it can also act as a proxy for GDP growth. After a gap of two months, September and October, FPI have been net buyers in the month of November and till date in December. Given the fact that in the last one year there has been a sort of underperformance by financials stocks, there is high probability tha...

It pays to be the leader and there is a good logical reason for it. It is not easy to become a leader of a particular sector. Right from the quality of the management and its ability to allocate capital correctly over a long term period of time and many economic cycles that makes a leader. Why is the issue of staying with the leader at this time ? Simple; valuations are not high and given the current sentiments, it is very likely that valuation may stay stretched before correction.

It is one of the riskiest spaces not only in markets but in the economy also. The reason, not only headwinds in terms of continued policy change risk, but the business itself is fraught with risks of more competition and uncertainty of any economy. However if one looks at the numbers of multibagger this industry has thrown, that is pretty impressive. The other side of the story is that it has also thrown a number of companies into bankruptcy. So, essentially, if one gets it right then there is m...

There has been a lot of talk about startups taking the space in the EV, but the fact is the old companies have also been working towards their EV plans. Given the amount of cash they are sitting with in their balance sheet, there is high probability that they will be able to launch a number of models out of which some would be successful and become the cash cows and deliver growth. So, dont write off the ability of big players, especially in two wheeler space as they might be close to getting t...

The problem with PE ratio is that it not only creates a mirage in terms of buying of a stock. But even selling stocks just because P/E is high is also something which leads to selling wealth creators early and then regretting or buying them at a point when they are expensive in real terms. So it is better to use peg ratio, which comes with its own challenges, which are still worth taking.

TIMB, LMB and BBSI made it to the Zacks Rank #1 (Strong Buy) growth stocks list on November 17, 2023.

It makes sense to pay more for a stock whose earnings grow at a faster rate. Now, how much more should be paid would be determined by dividing a company’s PE multiple with its growth ratio. But growth is a function of many variables and that is the challenge which one needs to navigate. But the effort saves trouble which many may face later on. Especially in sectors like banking and financial services which have large numbers of stocks which on face of it appear cheap but are actually not....

Given the fact that it is one of the easiest to calculate and understood by the majority of investors. Whether it is an analyst report or company’s presentation, it is very likely that price earning (P/E ) ratio might have been used to justify either a buy or sell recommendation. But there is a better ratio than this P/E, that is the PEG ratio. PEG ratio is a complex process and comes with its own set of challenges. However, even with these challenges, it is worth looking at PEG ratio bef...