Undervalued Stocks with Respect to Growth and Yield (PEG+Y Ratio)

As the Stock Market including the U.S. S&P 500 Index goes down, experienced people say you should start creating a wish list of companies to buy at lower levels.

One measure of valuation is the PEG+Y Ratio which is the Forward Price Earnings Ratio divided by the Five Year Estimated Growth Rate Plus Yield:

PEG+Y = (Forward Price Earnings Ratio) / (5 Year Estimated Growth Rate + Yield)

PEGY (simpler form is the PEG Ratio) of less than 1 is a great value. A PEGY ratio of greater than 2 (or some other value like 1.5) can be considered overvalued.

Here are some PEG+Y Ratios of some popular companies:

#	Symbol	Company	PEG+Y	Current Price	Forward P/E	5 Year Growth Rate	Forward Yield
1	CEDC	Central European Distribution	0.15	6.08	7.07	46.62	0.00
2	BTU	Peabody Energy	0.16	31.61	5.56	33.05	1.00
3	SI	Siemens	0.22	86.96	8.37	35.50	3.00
4	FCX	Freeport-McMoran	0.27	29.87	4.99	15.06	3.30
5	AEA	Advance America	0.37	7.12	6.72	15.00	3.40
6	BAC	Bank of America	0.38	5.53	4.61	11.48	0.70
7	LVS	Las Vegas Sands	0.38	36.71	14.86	30.08	0.00
8	VE	Veolia	0.41	13.78	9.44	13.15	10.10
9	NXG	Northgate Minerals	0.42	3.26	15.52	36.80	0.00
10	JPM	JP Morgan	0.44	28.65	5.4	8.96	3.30
11	SHFL	Shuffle Master	0.45	7.74	11.22	25.00	0.00
12	GLW	Corning Glassware	0.46	11.88	6	11.50	1.60
13	HRS	Harris Corp	0.47	33.23	6.09	9.63	3.30
14	CNQ	Canadian Natural Resources	0.49	27.59	7.79	14.70	1.20
15	WFC	Wells Fargo	0.50	23.18	6.94	12.00	2.00
16	ABB	ABB Ltd	0.50	16.42	8.6	13.40	3.90
17	GE	General Electric	0.50	14.69	9.3	14.74	3.90
18	BIDU	Baidu	0.50	105.16	23.9	47.65	0.00
19	AAPL	Apple	0.51	374.6	11.47	22.69	0.00
20	NIHD	NII Holdings Inc.	0.51	25.06	9.49	18.66	0.00
21	NTES	NetEase	0.52	36.35	8.95	17.30	0.00
22	CAT	Caterpillar	0.53	70.55	7.94	12.44	2.50
23	PCLN	Priceline	0.54	445.75	15.23	28.31	0.00
24	GILD	Gilead	0.54	37.81	8.4	15.43	0.00
25	RTN	Raytheon	0.55	39.5	7.22	9.00	4.20
26	INTC	Intel	0.56	20.62	8.35	11.03	3.90
27	SLB	Schlumberger	0.56	57.72	10.67	17.32	1.70
28	GS	Goldman Sachs	0.57	90.08	5.97	9.04	1.50
29	TDG	Transdigm Group	0.57	77.38	14.2	24.97	0.00
30	NFLX	Netflix	0.59	113.25	17.37	29.32	0.00
31	CELG	Celgene	0.59	60.7	14.35	24.16	0.00
32	GEOY	Geo Eye	0.61	27.1	2 10.72	17.50	0.00
33	GOOG	Google	0.61	495.52	11.8	19.21	0.00
34	HCBK	Hudson City Bancorp	0.64	5.31	6.9	5.00	5.70
35	PM	Philip Morris	0.65	61.76	11.88	13.26	4.90
36	SWY	Safeway	0.66	16.32	8.77	9.78	3.50
37	DECK	Deckers	0.67	88.11	15.09	22.50	0.00
38	LOW	Lowe's	0.68	18.98	10.66	12.73	2.90
39	MDRX	AllScripts	0.69	16.99	15.88	23.11	0.00
40	HD	Home Depot	0.71	31.59	11.79	13.51	3.00
41	TRMB	Trimble Navigation	0.73	32.4	2 13.4	18.25	0.00
42	MA	Mastercard	0.74	310.88	14.92	19.84	0.20
43	CSCO	Cisco	0.76	15.19	8.08	9.20	1.50
44	RIG	Transocean	0.76	45.91	7.77	3.65	6.60
45	DEO	Diageo	0.79	75.15	11.82	10.70	4.30
46	TGT	Target	0.82	47.8	11.01	10.96	2.40
47	WMT	Walmart	0.83	51.96	10.63	10.00	2.80
48	AMX	America Movil	0.84	21.5	9.51	9.95	1.40
49	ATVI	Activision	0.85	11.95	12.85	13.68	1.40
50	MO	Altria Group	0.86	26.56	12.13	8.0	0 6.10
51	INFY	Infosys	0.87	50.04	15.44	16.14	1.70
52	CME	Chicago Mercantile Exchange	0.87	248.5	12.76	12.44	2.30
53	IBM	IBM	0.87	173.29	11.74	11.83	1.70
54	CVS	CVS Caremark	0.87	32.97	10.34	10.35	1.50
55	GME	Gamestop	0.88	22.97	7.32	8.34	0.00
56	IGT	International Game Technology	0.89	13.73	12.15	11.99	1.70
57	ECOL	US Ecology	0.90	15.05	14.07	11.00	4.70
58	XOM	Exxon Mobil	0.90	71.15	8.14	6.47	2.60
59	WM	Waste Management	0.90	31.36	12.85	10.00	4.20
60	JACK	Jack in the Box	0.92	19.26	10.82	11.80	0.00
61	WEN	Wendy's	0.92	4.46	19.3	9 19.28	1.70
62	YUM	YUM Brands	1.02	48.45	15.0	9 12.56	2.30
63	PEP	Pepsi	1.06	60.29	12.51	8.55	3.30
64	ERTS	Electronic Arts	1.06	19.76	16.61	15.73	0.00
65	MON	Monsanto	1.08	60.11	17.58	14.30	2.00
66	VCLK	Value Click	1.08	14.92	13.44	12.43	0.00
67	UL	Unilever	1.10	30.56	12.18	7.00	4.10
68	PG	Procter and Gamble	1.12	62.84	13.63	8.90	3.30
69	T	AT&T	1.14	28.16	11.09	3.77	6.00
70	MCD	McDonalds	1.14	86.02	15.06	10.01	3.20
71	QSII	Quality Systems	1.15	92.11	26.85	21.95	1.40
72	SNDA	Shanda Interactive	1.17	28.86	15.86	13.53	0.00
73	K	Kellogg	1.18	52.88	13.95	8.65	3.20
74	GIS	General Mills	1.24	37.96	13.41	7.60	3.20
75	SWK	Stanley Black and Decker	1.26	48.25	7.91	3.00	3.30
76	YHOO	Yahoo	1.27	13.53	16.3	12.84	0.00
77	HMSY	HMS Holdings	1.27	22.95	31.01	24.33	0.00
78	JNJ	Johnson and Johnson	1.28	62.08	11.74	5.58	3.60
79	HAIN	Hain Celestial	1.28	28.31	16.27	12.70	0.00
80	PCP	Precision Castparts	1.28	148.33	14.29	11.05	0.10
81	HRL	Hormel Foods	1.31	26.53	14.99	9.50	1.90
82	ISRG	Intuitive Surgical	1.39	348.76	25.81	18.62	0.00
83	KO	Coca Cola	1.42	65.42	15.29	8.00	2.80
84	HANS	Hansen Natural	1.43	79.76	22.4	15.70	0.00
85	WFM	Whole Foods	1.44	62.44	27.75	18.70	0.60
86	CERN	Cerner	1.48	65.56	29.53	19.89	0.00
87	SGMS	Scientific Games	1.50	6.63	14.41	9.63	0.00
88	COST	Costco	1.52	81.63	21.26	12.77	1.20
89	GRMN	Garmin	1.56	30.6	14.17	4.10	5.00
90	COP	Conoco Philips	1.61	60.99	7.07	0.20	4.20
91	CMG	Chipotle Mexican Grill	1.65	292.7	33.88	20.50	0.00
92	CLH	Clean Harbors	1.69	47.83	20.18	11.93	0.00
93	AMT	American Towers	1.98	52.86	38.58	19.46	0.00
94	AMZN	Amazon	2.39	211.98	66.24	27.67	0.00
95	RGR	Sturm Ruger	5.80	24.63	12.76	0.00	2.20

The New Four Horsemen of Tech

In CNBC's Mad Money show on June 6, 2007, Jim Cramer chooses the Four NEW Horsemen of Tech:
1. Google (GOOG)
2. Amazon (AMZN)
3. Apple (AAPL)
4. Research in Motion (RIMM)

Google and Apple are two obvious choices. At the minimum, those two selections will definitely lead the Tech Market over the next decade or so.

Very interesting discussion on Stockpickr.com : Tech Corner

I like the Idea of AmazonBay, the merger of Amazon (AMZN) and Ebay (EBAY). Ebay has a monopoly on the internet used product and collectible market. Amazon has a monopoly on the new and commodized internet retailing market such as books and DVDs. Together, they would create a monster of an internet retailing dominating almost all segments of internet retailing. Amazon can get rid of their Used Amazon Marketplace in place of Ebay. Amazon can also get rid of their customer rating system in favor of Ebay's. Ebay even comes with Paypal. AmazonBay would be a very exciting company to own stock in.