This screen looks for large cap stocks above $5 billion in market capitalization with good valuation based on Book Value and Earnings multiples and a low PEG ratio. A PEG ratio under 1 is considered low. Dividends and other attributes are of no consideration in the screening (although you will look at other attributes in your further due diligence):
- PEG ratio, forward < 1
- PEG ratio, trailing < 1
- Price/Book Ratio < 2
- Price/Earnings Ratio < 12
Notes and Observations
At this time Lennar appears to be an interesting possibility. The residential real estate market is tight and there appears to be a significant pent up demand for new housing. I will be considering this stock further.
Image and article originally from valuestockguide.com. Read the original article here.