QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)

High PE Growth Stocks

This page lists companies that have unusually high price-to-earnings growth ratios (PEG ratios). The PEG ratio is a valuation metric for determining the relative trade-off between a stock's price, its earnings per share (EPS) and its expected earnings growth. It is calculated by dividing a stock's PE ratio by the earnings growth rate. PEG ratios are particularly useful in comparing the valuation of two stocks that have significantly different earnings growth rates.

Learn more about trading stocks based on High P/E.

MarketRank evaluates a company based on community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.
Available with a MarketBeat All Access Subscription
MarketRank™Upgrade to All Access to use the All Ranks Filter
Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.
Available with a MarketBeat All Access Subscription
Media SentimentUpgrade to All Access to use the All Sentiments Filter
Analyst consensus is the average investment recommendation among Wall Street research analysts.
Available with a MarketBeat All Access Subscription
Analyst ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyCurrent PricePE RatioPEG RatioMarket CapVolumeAverage VolumeIndicator(s)
Chewy, Inc. stock logo
CHWY
Chewy
$33.78
-0.7%
307.12112.03$14.42 billion1.75 million4.04 million
CarGurus, Inc. stock logo
CARG
CarGurus
$19.36
-0.2%
55.3234.14$2.22 billion1.30 million1.17 million
Agnico Eagle Mines Limited stock logo
AEM
Agnico Eagle Mines
$53.74
-2.5%
10.5825.81$26.55 billion2.88 million3.04 millionAnalyst Report
Analyst Revision
Shockwave Medical, Inc. stock logo
SWAV
Shockwave Medical
$276.60
-0.1%
43.6325.33$10.12 billion305,368561,093
Chegg, Inc. stock logo
CHGG
Chegg
$9.43
+3.1%
7.1421.89$1.13 billion3.71 million4.07 millionAnalyst Report
Agiliti, Inc. stock logo
AGTI
Agiliti
$16.22
+1.1%
180.2417.62$2.18 billion275,133239,273Insider Selling
Doximity, Inc. stock logo
DOCS
Doximity
$33.31
+4.3%
60.5615.17$6.45 billion2.05 million1.60 millionAnalyst Report
News Coverage
Southern Copper Co. stock logo
SCCO
Southern Copper
$69.08
-2.7%
20.0214.80$53.41 billion1.53 million1.33 millionAnalyst Report
Hyatt Hotels Co. stock logo
H
Hyatt Hotels
$115.19
+2.2%
21.6513.91$12.18 billion714,318886,269Dividend Announcement
Analyst Report
Insider Selling
FIGS, Inc. stock logo
FIGS
FIGS
$8.30
-1.3%
103.7613.69$1.39 billion3.54 million3.33 millionNegative News
Pure Storage, Inc. stock logo
PSTG
Pure Storage
$24.82
+3.2%
118.1913.31$7.65 billion4.22 million4.96 million
Box, Inc. stock logo
BOX
BOX
$27.77
+1.4%
555.4012.81$4.01 billion1.04 million1.48 millionAnalyst Report
Ryman Hospitality Properties, Inc. stock logo
RHP
Ryman Hospitality Properties
$94.63
+0.9%
25.2311.86$5.23 billion282,761384,846Analyst Report
Cirrus Logic, Inc. stock logo
CRUS
Cirrus Logic
$79.30
+0.3%
25.8311.76$4.38 billion373,432591,460Analyst Report
Petco Health and Wellness Company, Inc. stock logo
WOOF
Petco Health and Wellness
$10.11
-0.4%
30.6411.42$2.32 billion3.24 million2.42 millionUpcoming Earnings
Analyst Report
News Coverage
Positive News
European Wax Center, Inc. stock logo
EWCZ
European Wax Center
$17.07
+0.3%
155.2011.10$1.07 billion156,869360,320
Franco-Nevada Co. stock logo
FNV
Franco-Nevada
$152.20
-0.9%
43.3610.96$29.21 billion520,427618,016Analyst Report
Short Interest ↓
Consolidated Edison, Inc. stock logo
ED
Consolidated Edison
$95.36
-0.6%
13.589.95$33.05 billion1.77 million1.78 millionAnalyst Report
The AZEK Company Inc. stock logo
AZEK
AZEK
$25.00
+0.9%
277.789.83$3.77 billion1.88 million1.77 millionInsider Selling
Short Interest ↓
Barrick Gold Corp stock logo
GOLD
Barrick Gold
$17.81
-3.4%
296.839.80$31.26 billion22.41 million18.12 millionGap Down
Barrick Gold Co. stock logo
GOLD
Barrick Gold
$17.81
-3.4%
296.839.64$31.26 billion22.41 million18.12 millionUpcoming Earnings
Analyst Report
Gap Down
Stanley Black & Decker, Inc. stock logo
SWK
Stanley Black & Decker
$83.14
+1.7%
18.609.53$12.73 billion1.46 million1.80 millionAnalyst Report
Revolve Group, Inc. stock logo
RVLV
Revolve Group
$17.21
-1.7%
25.319.49$1.26 billion1.18 million1.31 millionGap Down
National Storage Affiliates Trust stock logo
NSA
National Storage Affiliates Trust
$37.19
-0.5%
37.198.72$3.28 billion407,950725,242Analyst Report
Positive News
W. P. Carey Inc. stock logo
WPC
W. P. Carey
$68.59
-1.6%
19.278.71$14.67 billion1.39 million938,607Analyst Report
Positive News
James Hardie Industries plc stock logo
JHX
James Hardie Industries
$24.94
+0.4%
21.698.61$11.02 billion23,44175,525Analyst Report
Alarm.com Holdings, Inc. stock logo
ALRM
Alarm.com
$51.14
+1.4%
43.348.55$2.55 billion295,751223,162Analyst Report
Insider Selling
Crescent Energy stock logo
CRGY
Crescent Energy
$10.37
+2.8%
1.908.52$1.76 billion297,233382,484
Wheaton Precious Metals Corp. stock logo
WPM
Wheaton Precious Metals
$47.85
-2.5%
34.678.47$21.64 billion1.89 million2.36 millionAnalyst Report
Analyst Revision
Bentley Systems, Incorporated stock logo
BSY
Bentley Systems
$46.58
+2.0%
91.348.46$13.12 billion639,632754,978
Progress Software Co. stock logo
PRGS
Progress Software
$57.58
+1.6%
25.828.41$2.45 billion185,613322,283Analyst Report
GLOBALFOUNDRIES Inc. stock logo
GFS
GLOBALFOUNDRIES
$56.89
+2.1%
20.618.28$31.16 billion1.17 million1.53 million
Qiagen stock logo
QGEN
Qiagen
$44.92
-0.1%
29.178.23$10.23 billion565,510745,450Analyst Report
Mid-America Apartment Communities, Inc. stock logo
MAA
Mid-America Apartment Communities
$148.38
-0.4%
26.038.11$17.31 billion413,550721,936Dividend Announcement
Analyst Downgrade
Analyst Revision
News Coverage
Black Hills Co. stock logo
BKH
Black Hills
$63.19
-0.2%
16.207.80$4.21 billion401,440459,536Analyst Report
Advanced Micro Devices, Inc. stock logo
AMD
Advanced Micro Devices
$107.93
+4.0%
469.267.65$173.81 billion73.95 million61.92 millionAnalyst Report
Short Interest ↓
Under Armour, Inc. stock logo
UAA
Under Armour
$7.62
+2.7%
8.867.41$3.38 billion6.51 million7.43 millionAnalyst Report
Phibro Animal Health Co. stock logo
PAHC
Phibro Animal Health
$13.87
-1.3%
19.547.40$561.74 million70,145103,519Analyst Report
Triumph Group, Inc. stock logo
TGI
Triumph Group
$12.14
+0.2%
8.737.40$789.22 million1.60 million997,127Earnings Report
Analyst Report
Options Volume
News Coverage
West Pharmaceutical Services, Inc. stock logo
WST
West Pharmaceutical Services
$350.74
+0.8%
48.187.35$26.04 billion256,023531,732Analyst Report
Analyst Revision
STAG Industrial, Inc. stock logo
STAG
STAG Industrial
$34.43
+0.3%
35.137.30$6.18 billion1.01 million1.65 millionAnalyst Report
Armada Hoffler Properties, Inc. stock logo
AHH
Armada Hoffler Properties
$11.42
+1.8%
13.447.16$1.01 billion326,154318,733Short Interest ↓
General Electric stock logo
GE
General Electric
$104.01
+0.5%
13.567.12$113.26 billion4.59 million7.35 millionAnalyst Report
Short Interest ↓
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. stock logo
OMAB
Grupo Aeroportuario del Centro Norte
$90.74
-0.9%
20.087.08$3.90 billion77,26475,126Analyst Report
News Coverage
Positive News
Independence Realty Trust, Inc. stock logo
IRT
Independence Realty Trust
$16.79
+0.8%
73.007.07$3.77 billion1.10 million1.95 millionAnalyst Report
Short Interest ↑
Positive News
Red Rock Resorts, Inc. stock logo
RRR
Red Rock Resorts
$47.51
+2.8%
14.276.68$4.95 billion415,000452,053Analyst Report
The J. M. Smucker Company stock logo
SJM
J. M. Smucker
$151.88
-1.8%
22.876.63$16.20 billion936,318896,556Analyst Report
Portillo's Inc. stock logo
PTLO
Portillo's
$21.30
-0.4%
88.756.60$1.17 billion580,061767,263
Lam Research Co. stock logo
LRCX
Lam Research
$598.74
+4.3%
16.676.57$80.43 billion1.92 million1.30 millionDividend Announcement
Analyst Report
Short Interest ↓
ManpowerGroup Inc. stock logo
MAN
ManpowerGroup
$73.82
+1.5%
10.736.42$3.72 billion361,007344,006Analyst Report
Short Interest ↓
Futu Holdings Limited stock logo
FUTU
Futu
$38.66
-6.7%
14.816.40$5.81 billion4.59 million2.68 millionUpcoming Earnings
Analyst Downgrade
Options Volume
Gap Down
The Estée Lauder Companies Inc. stock logo
EL
Estée Lauder Companies
$199.85
+1.4%
66.406.33$71.43 billion1.92 million1.71 millionAnalyst Report
Insider Selling
Black Knight, Inc. stock logo
BKI
Black Knight
$55.76
+1.0%
37.936.24$8.74 billion508,2471.20 million
Vail Resorts, Inc. stock logo
MTN
Vail Resorts
$245.11
+2.2%
29.826.22$18.83 billion295,063383,306Analyst Report
BCE Inc. stock logo
BCE
BCE
$46.78
-0.5%
21.966.06$42.67 billion686,9471.20 million
ANSYS, Inc. stock logo
ANSS
ANSYS
$306.90
+1.7%
48.485.88$26.61 billion346,242477,063Analyst Report
Insider Selling
Fortune Brands Innovations, Inc. stock logo
FBIN
Fortune Brands Innovations
$66.83
+2.1%
14.725.84$8.47 billion803,0501.10 millionDividend Announcement
L3Harris Technologies, Inc. stock logo
LHX
L3Harris Technologies
$185.84
+0.0%
38.805.79$35.21 billion1.89 million1.20 millionAnalyst Report
Short Interest ↑
The Trade Desk, Inc. stock logo
TTD
Trade Desk
$67.52
+2.1%
450.135.75$33.14 billion3.43 million4.38 millionAnalyst Report
Insider Selling
Analyst Revision
Spirit Realty Capital, Inc. stock logo
SRC
Spirit Realty Capital
$38.41
-0.6%
16.855.75$5.43 billion962,217792,769Analyst Report
Positive News
IDACORP, Inc. stock logo
IDA
IDACORP
$105.99
-1.2%
19.965.74$5.36 billion283,009200,914Analyst Report
Short Interest ↓
Celanese Co. stock logo
CE
Celanese
$107.51
+1.7%
7.915.71$11.47 billion1.01 million1.15 millionAnalyst Report
Insider Buying
Short Interest ↓
Analyst Revision
Camtek Ltd. stock logo
CAMT
Camtek
$29.15
+2.8%
17.775.67$1.30 billion57,59499,580Analyst Report
Electronic Arts Inc. stock logo
EA
Electronic Arts
$126.21
+1.0%
43.985.66$34.61 billion2.41 million2.41 millionAnalyst Report
Insider Selling
InvenTrust Properties Corp. stock logo
IVT
InvenTrust Properties
$22.07
-0.5%
33.955.63$1.49 billion205,281221,417
Hasbro, Inc. stock logo
HAS
Hasbro
$62.00
+0.0%
72.095.59$8.59 billion982,1281.96 millionAnalyst Downgrade
Analyst Revision
VIZIO Holding Corp. stock logo
VZIO
VIZIO
$7.20
-2.2%
144.035.59$1.41 billion444,798390,386Analyst Revision
PG&E Co. stock logo
PCG
PG&E
$16.56
-1.4%
18.615.52$40.96 billion19.53 million14.71 millionAnalyst Report
Intuitive Surgical, Inc. stock logo
ISRG
Intuitive Surgical
$312.23
+1.3%
85.315.49$109.41 billion1.37 million1.69 millionAnalyst Report
Entergy Co. stock logo
ETR
Entergy
$101.50
-0.6%
18.455.43$21.46 billion1.15 million1.33 millionShort Interest ↓
Analyst Revision
ServiceNow, Inc. stock logo
NOW
ServiceNow
$510.17
+3.5%
260.295.39$103.94 billion2.85 million1.67 millionAnalyst Report
Insider Selling
Options Volume
Analyst Revision
LeMaitre Vascular, Inc. stock logo
LMAT
LeMaitre Vascular
$63.15
-1.0%
67.905.36$1.40 billion138,79695,721Analyst Report
Insider Selling
Casella Waste Systems, Inc. stock logo
CWST
Casella Waste Systems
$94.59
-0.5%
93.655.30$4.91 billion284,686248,630Analyst Report
Short Interest ↑
Werner Enterprises, Inc. stock logo
WERN
Werner Enterprises
$44.64
-0.3%
12.865.18$2.83 billion575,077561,738Dividend Increase
Analyst Downgrade
Tanger Factory Outlet Centers, Inc. stock logo
SKT
Tanger Factory Outlet Centers
$19.65
-1.6%
24.875.16$2.07 billion838,2581.01 millionAnalyst Report
Positive News
NVIDIA Co. stock logo
NVDA
NVIDIA
$316.78
+5.0%
182.065.12$783.44 billion73.89 million46.46 millionUpcoming Earnings
Analyst Report
Extra Space Storage Inc. stock logo
EXR
Extra Space Storage
$149.18
0.0%
23.465.11$20.15 billion732,3641.28 millionAnalyst Report
Positive News
Nokia Oyj stock logo
NOK
Nokia Oyj
$4.01
-0.2%
5.085.10$22.59 billion9.97 million17.78 millionAnalyst Downgrade
Analyst Revision
News Coverage
Northrop Grumman Co. stock logo
NOC
Northrop Grumman
$443.60
-0.8%
14.355.09$67.93 billion517,944962,275Dividend Increase
Analyst Report
Analyst Revision
Palo Alto Networks, Inc. stock logo
PANW
Palo Alto Networks
$189.72
-0.9%
2,587.215.07$57.41 billion5.23 million4.07 millionUpcoming Earnings
Analyst Report
HealthStream, Inc. stock logo
HSTM
HealthStream
$23.73
-0.1%
60.855.07$728.11 million68,631121,907Analyst Report
Positive News
Edwards Lifesciences Co. stock logo
EW
Edwards Lifesciences
$87.41
-0.3%
36.275.04$52.99 billion2.89 million3.21 millionAnalyst Report
Huntington Bancshares Incorporated stock logo
HBAN
Huntington Bancshares
$10.23
+1.9%
6.605.01$14.77 billion17.85 million19.03 millionAnalyst Report
Short Interest ↓
Pembina Pipeline Co. stock logo
PBA
Pembina Pipeline
$31.00
-1.1%
8.245.00$17.06 billion835,244682,119Analyst Report
Kinder Morgan, Inc. stock logo
KMI
Kinder Morgan
$16.52
+0.4%
14.624.98$37.02 billion12.06 million12.74 millionAnalyst Report
McCormick & Company, Incorporated stock logo
MKC
McCormick & Company, Incorporated
$88.58
-0.2%
35.864.97$23.76 billion903,6101.40 millionAnalyst Report
Insider Selling
News Coverage
DiamondRock Hospitality stock logo
DRH
DiamondRock Hospitality
$8.23
+1.5%
18.294.97$1.73 billion3.47 million2.18 millionAnalyst Report
The Southern Company stock logo
SO
Southern
$71.05
+0.2%
22.924.91$77.47 billion4.35 million4.19 millionAnalyst Report
Analyst Revision
APA Co. stock logo
APA
APA
$32.71
+0.5%
5.324.91$10.09 billion5.71 million5.98 millionAnalyst Report
Short Interest ↓
Dynatrace, Inc. stock logo
DT
Dynatrace
$49.18
+4.5%
491.804.90$14.22 billion8.10 million2.74 millionAnalyst Upgrade
Options Volume
News Coverage
Gap Up
High Trading Volume
SoundThinking, Inc. stock logo
SSTI
SoundThinking
$25.52
+6.4%
77.344.90$312.37 million84,96657,728
Abbott Laboratories stock logo
ABT
Abbott Laboratories
$108.47
-0.3%
32.974.90$188.62 billion3.48 million5.10 millionAnalyst Report
Short Interest ↓
Sealed Air Co. stock logo
SEE
Sealed Air
$42.18
+0.9%
15.234.87$6.09 billion941,0031.16 millionDividend Announcement
Analyst Report
Wingstop Inc. stock logo
WING
Wingstop
$204.10
+0.4%
102.054.85$6.12 billion348,425618,288Analyst Report
RBC Bearings Incorporated stock logo
RBC
RBC Bearings
$224.34
-0.2%
51.344.83$6.51 billion242,743159,411Upcoming Earnings
News Coverage
RBC Bearings Incorporated stock logo
RBC
RBC Bearings
$224.34
-0.2%
51.344.83$6.51 billion242,743159,411Upcoming Earnings
News Coverage
SSR Mining Inc. stock logo
SSRM
SSR Mining
$15.75
-2.2%
21.884.76$3.32 billion1.36 million1.60 millionAnalyst Downgrade
Insider Buying
Tenet Healthcare Co. stock logo
THC
Tenet Healthcare
$73.17
+1.3%
19.514.69$7.46 billion1.27 million1.59 millionAnalyst Report
Equity LifeStyle Properties, Inc. stock logo
ELS
Equity LifeStyle Properties
$64.74
-2.1%
42.594.69$12.06 billion892,148794,791Analyst Report
Short Interest ↓
News Coverage
Trading Halted
ON Semiconductor Corporation stock logo
ON
ON Semiconductor
$86.49
+1.0%
21.104.67$37.35 billion7.61 million6.86 millionAnalyst Report
Insider Selling
Analyst Revision

Investing in the High PE Growth Stocks

This table of high PEG and P/E growth stocks can give you a quick rundown of some potentially overvalued companies using these ratios.

It’s possible to filter your selection using the dropdown menus for the country, sector, and market cap so you can more granular comparisons.

For example, if you’d like to see a list of companies that have the highest P/E and PEG ratios in the financial sector, you can use this tool by selecting the appropriate menu item in the sector drop-down list.

With a MarketBeat subscription, you’ll also get access to seeing data for companies ranked by MarketRank, media sentiment, and analyst consensus. 

Consider it as giving you a birds-eye view of companies to look out for before more rigorous analysis and due diligence takes place, as well as spotting companies with unusually high valuation ratios.

Growth stocks are a type of stock that typically experience above-average growth in both their earnings and share price. They are often associated with newer, faster-growing companies but can also be found in more established businesses. Many investors believe that growth stocks have more upside potential than other types of stocks but also come with more risk. 

Growth stocks tend to be more volatile than other types of stocks, and their share prices can fluctuate widely. This is because investors are often willing to pay higher prices for growth stocks in anticipation of future earnings growth. However, if a company's earnings growth does not meet expectations, its share price can drop sharply. 

Growth stocks can be a good addition to any portfolio, but it's important to remember that they come with higher risks. When investing in growth stocks, it's important to do your homework and only invest in companies that you believe have a strong future.

The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings. The price-to-earnings ratio is also sometimes known as the price multiple or the earnings multiple. The P/E ratio is one of the most commonly used ratios by investors and analysts to determine whether a company's stock is over- or under-valued. The ratio is also used to compare the relative value of companies in the same industry. 

The P/E ratio can be calculated by dividing a company's share price by its earnings per share (EPS). For example, if a company's stock price is $30 and its EPS is $3, then its P/E ratio would be 10 (i.e., $30/$3). The P/E ratio is often referred to as a "multiple" because it shows how much investors are willing to pay for each dollar of a company's earnings. 

A high P/E ratio indicates that investors are willing to pay a high price for a company's shares relative to its earnings. This may be because they expect the company's earnings to grow in the future. A low P/E ratio indicates that investors are unwilling to pay as much for a company's shares relative to its earnings. This may be because they expect the company's earnings to grow slower or because they believe it is currently overvalued. 

The P/E ratio is not a perfect measure and has several limitations. For example, it does not consider a company's debt-to-equity ratio or the fact that a company may have a large amount of cash on its balance sheet. However, the P/E ratio is still useful for investors and analysts to use in their valuation analysis.

The PEG ratio (price-to-earnings-to-growth ratio) is an extension of the P/E ratio. When considering the company's growth rate, it is used to determine whether a stock is overvalued, undervalued, or fairly valued.

The P/E ratio calculates the stock's price-per-share by the company's earnings-per-share (EPS). For example, if a company's stock is trading at $30 per share and the company's EPS is $2.50, the company's P/E ratio would be 30 divided by 2.50, or 12. A P/E ratio of 12 means that the company's stock price is trading at 12 times the company's earnings.

The PEG ratio calculates the stock's price-per-share by the company's EPS growth rate. For example, if a company's stock is trading at $30 per share and the company's EPS is expected to grow at a rate of 20% per year, the company's PEG ratio would be 30 divided by 20, or 1.5. A PEG ratio of 1.5 means that the company's stock price is trading at 1.5 times the company's EPS growth rate.

The first issue is that the P/E ratio only considers the stock's current market price and not the intrinsic value. The intrinsic value is the true value of the company, based on its fundamentals. The market price may be higher or lower than the intrinsic value, and the P/E ratio will not tell you which is which.

The second issue is that the P/E ratio can be forward-looking based on future earnings estimates. These estimates can be very inaccurate, and the P/E ratio will not tell you how accurate they are.

The third issue is that the P/E ratio only considers the company's earnings, not the cash flow. The cash flow is the money that is actually available to the shareholders, and it can be very different from the earnings.

A better metric to use is the EV/EBITDA ratio. EV stands for enterprise value, which is the stock's market value plus the debt minus the cash. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. This ratio is a better measure of the company's value because it considers the debt and the cash and is not forward-looking.

Another metric that is sometimes used is the P/FCF ratio. FCF stands for free cash flow, which is the cash flow available to the shareholders after all the expenses have been paid. This ratio is a good measure of the company's value, but it can be difficult to calculate.

There are a few things to look for when identifying a growth stock. One is a company with a history of strong earnings growth. Another is a company that is investing heavily in research and development, which can be a sign that they are preparing for future growth. Finally, a company with a strong brand and a loyal customer base is more likely to continue growing than one without these things.

Once you have identified a few potential growth stocks, it's important to do your own research. This includes reading financial reports, analyzing the company's competitive position, and speaking to analysts. Having a clear investment strategy and knowing your risk tolerance are also important.

If you're comfortable with a higher degree of risk, you may want to consider investing in small-cap growth stocks. These are stocks of companies with a market capitalization of less than $2 billion. Small-cap stocks tend to be more volatile than large-cap stocks, but they also offer the potential for higher returns.

Another option for growth investors is to invest in mutual funds or exchange-traded funds that focus on growth stocks. These can offer diversification and professional management, which can help to reduce risk.

Finally, it's important to remember that growth stocks can be volatile and don't always go up. Having a long-term perspective and being prepared for bumps in the road are important. If you're patient and disciplined, investing in growth stocks can be a great way to build your wealth over time.

It depends on your investment goals and your risk tolerance. 

If you're investing for the long term and you're willing to ride out the ups and downs, you may want to invest a larger portion of your portfolio in growth stocks. 

On the other hand, if you're investing for the short term or are risk-averse, you may want to invest only a small portion of your portfolio in growth stocks.

The bottom line is that there's no right or wrong answer. It's up to you to decide how much to invest in growth stocks based on your individual circumstances.

One of the biggest disadvantages of growth stocks is that they are often much more volatile than other types of stocks. This means that their prices can fluctuate a great deal in a short period of time, which can make them very risky investments.

Another downside to growth stocks is that they tend to be much more expensive than other types of stocks. This is because investors are willing to pay more for a stock that has the potential to grow a lot in value. As a result, if a growth stock does not perform as well as expected, it can be a very expensive mistake.

Finally, growth stocks can be difficult to sell. This is because there are often few buyers willing to pay the high prices that these stocks can command. As a result, investors may have to hold on to a growth stock for a long time in order to sell it at a profit.

Growth stocks are an attractive investment for many reasons. They offer the potential for high capital gains and are often associated with companies that are innovators in their industries.

On the other hand, value stocks offer a different kind of appeal. They tend to be less volatile than growth stocks and often provide a steadier source of income.

Value stocks can also be a good choice for investors who are looking for an alternative to growth stocks. Here are some reasons why:

  1. Value stocks tend to be less risky.

One of the main reasons why value stocks are an attractive investment is because they tend to be less risky than growth stocks.

Value stocks are typically well-established companies with a solid track record. They may not offer the same potential for high capital gains as growth stocks, but they are less likely to experience sharp declines in value.

  1. Value stocks can provide a steadier source of income.

Another reason to consider value stocks is that they can provide a steadier source of income than growth stocks.

Many value stocks pay dividends, providing investors with a regular income stream. On the other hand, growth stocks tend to reinvest their profits into the business, which can lead to more volatile earnings.

  1. Value stocks may be undervalued.

One of the main reasons why value stocks can be an attractive investment is because they may be undervalued by the market.

Value stocks tend to be overlooked by investors who are focused on growth. As a result, they may be trading at a discount to their intrinsic value.

  1. Value stocks can provide downside protection.

In a market downturn, value stocks can offer some downside protection.

While growth stocks tend to experience sharp declines in value, value stocks often hold up better. This is because investors are willing to pay a premium for companies with a solid track record and strong fundamentals

Value stocks can be a good alternative to growth stocks for many reasons. They tend to be less risky, they can provide a steadier source of income, and they may be undervalued by the market. Value stocks can be a good choice if you want a long-term investment.

More Stock Ideas from MarketBeat

My Account -