5 Best Value Stocks With Discounted PEG to Boost Your Portfolio Return

Core Insights - In times of market volatility, investors are increasingly turning to value investing as a strategy to capitalize on discounted stock prices when others are selling off [1][2] Value Investing Overview - Value investing can lead to "value traps" where stocks underperform due to persistent issues rather than temporary problems [3] - Key metrics for identifying value stocks include dividend yield, P/E ratio, and P/B ratio [3] Importance of PEG Ratio - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is a crucial metric for assessing a stock's intrinsic value [5] - A low PEG ratio is preferred for value investors, but it has limitations, particularly in accounting for changing growth rates over time [6] Screening Criteria for Value Stocks - Recommended criteria for selecting value stocks include: - PEG Ratio less than industry median - P/E Ratio less than industry median - Zacks Rank of 1 (Strong Buy) or 2 (Buy) - Market Capitalization greater than $1 billion - Average 20-Day Volume greater than 50,000 - Percentage Change in F1 Earnings Estimate Revisions greater than 5% - Value Score of A or B combined with a Zacks Rank of 1, 2, or 3 [7] Selected Stocks - Ingredion Incorporated (INGR): A global ingredient solutions provider with 2023 annual net sales of nearly $8 billion and a five-year expected growth rate of 11% [9][10] - Pfizer (PFE): A major pharmaceutical company with a long-term expected growth rate of 10.7% and a Zacks Rank of 2 [10][11] - Leidos (LDOS): A leader in science and technology with a five-year expected growth rate of 14.8% and a Zacks Rank of 1 [12] - LATAM Airlines Group (LTM): Provides extensive air transportation services with a long-term expected earnings growth rate of 14.2% and a Zacks Rank of 1 [13][14] - Alibaba Group (BABA): A leading e-commerce giant in China with a long-term expected growth rate of 24% and a Zacks Rank of 1 [15][16]