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4 Low PEG-Value Stocks for Smarter Portfolio Growth Today
At a time when volatility strikes every second day, investors often rely on value investing rather than other options like growth or momentum. As soon as other investors start selling their stocks at a cheaper rate in times of market uncertainty, value investors take this as an opportunity to pick good stocks at a discounted price.
Several stocks that have surged significantly in the recent past have shown the overwhelming success of this pure-play investment strategy. Here, we discuss four such stocks - Crocs, LATAM Airlines Group, Arrow Electronics and Phibro Animal Health.
However, this apparently simple value investment technique has some drawbacks and not understanding the strategy properly may often lead to "value traps." In such a situation, these value picks start to underperform over the long run as the temporary problems, which once drove the share price down, turn out to be persistent.
There are many value investment yardsticks, such as dividend yield, P/E or P/B, which are simple and can single out whether a stock is trading at a discount.
However, for investors looking to escape such value traps, it is also vital to determine where the stock would be headed in the next 12 to 24 months. Warren Buffett advises these investors to focus on the earnings growth potential of a stock. This is where lies the importance of a not-so-popular value investing metric, the PEG ratio.
PEG Ratio at a Glance
The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate
A low PEG ratio is always better for value investors.
While P/E alone fails to identify a true value stock, PEG helps find the intrinsic value of a stock.
There are some drawbacks to using the PEG ratio. It doesn't consider the common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.
Hence, PEG-based investing can turn out to be even more rewarding if some other relevant parameters are also taken into consideration.
Here are four stocks that qualified the screening:
Crocs: Based in Broomfield, CO, Crocs is one of the leading footwear brands with its focus on comfort and style. Famous for its iconic clog material, Crocs' simple design and great comfort were an instant hit among consumers. The company offers a wide variety of footwear products, including sandals, wedges, flips and slides that cater to people of all ages.
CROX currently has a Zacks Rank #2 and a Value Score of B. It also has an impressive five-year historical growth rate of 23%.
LATAM Airlines: Headquartered in Santiago, Chile, LATAM Airlines is Latin America's leading airline. The company is benefiting from its lean cost structure, expanding operations and strategic partnerships. Its focus on premium traffic presents significant opportunities for revenue growth and margin expansion.
Arrow Electronics: The company is a New York-based global distributor of electronic components and enterprise computing products. The company offers one of the industry's broadest portfolios, serving manufacturers and technology providers worldwide. Beyond distribution, Arrow delivers value-added services that help customers speed time to market, reduce total cost of ownership and drive demand for new products.
ARW currently sports a Zacks Rank #1 and a Value Score of B. It also has an impressive five-year expected growth rate of 15.2%.
Phibro: Headquartered in New Jersey, Phibro Animal Health Corporation is a leading global diversified animal health and mineral nutrition company. The company provides a broad range of products for food animals, including poultry, swine, beef and dairy cattle and aquaculture. In addition to animal health and mineral nutrition products, Phibro manufactures and markets specific ingredients for use in the personal care, automotive, industrial chemical and chemical catalyst industries.
PAHC currently flaunts a Zacks Rank #1 and a Value Score of B. It also has an impressive five-year expected growth rate of 21.5%.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include Crocs, LATAM Airlines, Arrow Electronics and Phibro Animal Health
For Immediate Release
Chicago, IL – February 27, 2026 – Stocks in this week’s article are Crocs (CROX - Free Report) , LATAM Airlines Group (LTM - Free Report) , Arrow Electronics (ARW - Free Report) and Phibro Animal Health (PAHC - Free Report) .
4 Low PEG-Value Stocks for Smarter Portfolio Growth Today
At a time when volatility strikes every second day, investors often rely on value investing rather than other options like growth or momentum. As soon as other investors start selling their stocks at a cheaper rate in times of market uncertainty, value investors take this as an opportunity to pick good stocks at a discounted price.
Several stocks that have surged significantly in the recent past have shown the overwhelming success of this pure-play investment strategy. Here, we discuss four such stocks - Crocs, LATAM Airlines Group, Arrow Electronics and Phibro Animal Health.
However, this apparently simple value investment technique has some drawbacks and not understanding the strategy properly may often lead to "value traps." In such a situation, these value picks start to underperform over the long run as the temporary problems, which once drove the share price down, turn out to be persistent.
There are many value investment yardsticks, such as dividend yield, P/E or P/B, which are simple and can single out whether a stock is trading at a discount.
However, for investors looking to escape such value traps, it is also vital to determine where the stock would be headed in the next 12 to 24 months. Warren Buffett advises these investors to focus on the earnings growth potential of a stock. This is where lies the importance of a not-so-popular value investing metric, the PEG ratio.
PEG Ratio at a Glance
The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate
A low PEG ratio is always better for value investors.
While P/E alone fails to identify a true value stock, PEG helps find the intrinsic value of a stock.
There are some drawbacks to using the PEG ratio. It doesn't consider the common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.
Hence, PEG-based investing can turn out to be even more rewarding if some other relevant parameters are also taken into consideration.
Here are four stocks that qualified the screening:
Crocs: Based in Broomfield, CO, Crocs is one of the leading footwear brands with its focus on comfort and style. Famous for its iconic clog material, Crocs' simple design and great comfort were an instant hit among consumers. The company offers a wide variety of footwear products, including sandals, wedges, flips and slides that cater to people of all ages.
CROX currently has a Zacks Rank #2 and a Value Score of B. It also has an impressive five-year historical growth rate of 23%.
LATAM Airlines: Headquartered in Santiago, Chile, LATAM Airlines is Latin America's leading airline. The company is benefiting from its lean cost structure, expanding operations and strategic partnerships. Its focus on premium traffic presents significant opportunities for revenue growth and margin expansion.
LTM currently has a Zacks Rank #2 and a Value Score of A. It also has an impressive five-year expected growth rate of 24.6%. You can see the complete list of today's Zacks #1 Rank stocks here.
Arrow Electronics: The company is a New York-based global distributor of electronic components and enterprise computing products. The company offers one of the industry's broadest portfolios, serving manufacturers and technology providers worldwide. Beyond distribution, Arrow delivers value-added services that help customers speed time to market, reduce total cost of ownership and drive demand for new products.
ARW currently sports a Zacks Rank #1 and a Value Score of B. It also has an impressive five-year expected growth rate of 15.2%.
Phibro: Headquartered in New Jersey, Phibro Animal Health Corporation is a leading global diversified animal health and mineral nutrition company. The company provides a broad range of products for food animals, including poultry, swine, beef and dairy cattle and aquaculture. In addition to animal health and mineral nutrition products, Phibro manufactures and markets specific ingredients for use in the personal care, automotive, industrial chemical and chemical catalyst industries.
PAHC currently flaunts a Zacks Rank #1 and a Value Score of B. It also has an impressive five-year expected growth rate of 21.5%.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2876248/4-low-peg-value-stocks-for-smarter-portfolio-growth-today
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.