5 Best PEG-Driven Value Stocks to Boost Your Portfolio Returns

Core Insights - Value investing is gaining traction in a market facing external shocks, with notable success from investors like Warren Buffett, who achieved a 19.8% CAGR for Berkshire Hathaway from 1965 to 2023, compared to a 10.2% rise in the S&P 500 during the same period [1] - The PEG ratio is highlighted as an effective metric for identifying value stocks, as it considers both price/earnings and earnings growth rate, unlike traditional metrics [4][3] - Five stocks are identified as strong candidates for value investing based on their PEG ratios and other criteria: Stride, Inc. (LRN), Virtu Financial (VIRT), The Travelers Companies (TRV), Coastal Financial (CCB), and Gold Fields Limited (GFI) [1][6] Value Investing Metrics - The PEG ratio is defined as (Price/Earnings)/Earnings Growth Rate, with a lower PEG ratio being preferable for value investors [4] - Commonly used metrics like P/E, P/B, and dividend yield may lead to "value traps" if growth potential is not considered, emphasizing the importance of the PEG ratio [3][2] - Screening criteria for successful value investing include a PEG ratio less than the industry median, a P/E ratio below the industry median, a Zacks Rank of 1 or 2, market capitalization over $1 billion, average 20-day volume greater than 50,000, and upward earnings estimate revisions greater than 5% [4][5] Company Profiles - Stride, Inc. (LRN): A technology-based education service company with a Zacks Rank of 1 and a Value Score of A, boasting a five-year historical growth rate of 43.8% [6] - Virtu Financial (VIRT): A financial services firm with a Zacks Rank of 1 and a Value Score of A, featuring a long-term expected growth rate of 25.3% [7] - The Travelers Companies (TRV): A holding company providing property and casualty insurance, currently holding a Zacks Rank of 2 and a Value Score of A, with a long-term expected growth rate of 11.3% [8] - Coastal Financial (CCB): A bank holding company with a Zacks Rank of 2 and a Value Score of A, expected to have a remarkable earnings growth rate of 69.4% in 2025 [8] - Gold Fields Limited (GFI): A diversified gold producer with a Zacks Rank of 2 and a Value Score of B, having a long-term historical growth rate of 30.2% [9]