Value on the Move: Screening for Low PEG Ratio Stocks
It is not uncommon for a value investor to worry about being caught in a “value trap.” This occurs when a stock appears to be attractive based on valuation multiples, but the price remains depressed. The trap is that the stock’s seemingly low price is actually appropriate. The value trap can also occur when a stock is undervalued, but other investors fail to catch on to this mispricing.
A good way to avoid this problem is to look for stocks that have characteristics besides a low valuation that justify a higher price. Two screens highlighted in this arti
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