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4 Best PEG-Based Value Stocks to Buy for Market-Beating Returns
In periods when market volatility seems to strike every other day, many investors turn to value investing over strategies like growth or momentum. When uncertainty drives others to sell stocks at lower prices, value investors see it as a chance to scoop up companies with solid fundamentals at a discount.
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 — Phibro Animal Health, Daktronics, UP Fintech Holding Ltd. and Gold Fields Ltd..
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 very 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:
Phibro: Headquartered in NJ, Phibro 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, 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 has a Zacks Rank #2 and a Value Score of A. Phibro also has an impressive five-year expected growth rate of 12.8%.
Daktronics: It designs, manufactures and sells electronic scoreboards, programmable display systems, and large-screen video displays for sports, commercial, and transportation uses worldwide. It operates through Commercial, Live Events, High School & Recreation, Transportation, and International segments. Daktronics' products include video walls, scoreboards, LED message signs, intelligent transportation displays, transit and mass communication systems, sound systems, digital billboards, and price displays.
Daktronics currently has a Zacks Rank #1 and a Value Score of B. DAKT also has an impressive five-year historical growth rate of 59.5%.
UP Fintech: It offers online brokerage services for Chinese investors across New Zealand, the Cayman Islands, Singapore, the United States and other nations. Its Tiger Trade platform, available via app and web, enables trading in stocks, options, warrants and other securities. UP Fintech also provides value-added services, such as investor education, community features and IR solutions.
Apart from a discounted PEG and P/E, UP Fintech currently has a Zacks Rank #2 and a Value Score of B. TIGR has a long-term expected growth rate of 19.1%.
Gold Fields: It is a gold producer with mining reserves and resources across Australia, South Africa, Ghana, Peru, Chile and Canada. The company also engages in copper and silver exploration and is headquartered in Sandton, South Africa.
Gold Fields has a Zacks Rank #2 and a Value Score of B. GFI also has an impressive five-year expected growth rate of 36.4%.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
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.
See More Zacks Research for These Tickers
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Zacks.com featured highlights include Phibro Animal Health, Daktronics, UP Fintech and Gold Fields
For Immediate Release
Chicago, IL – September 19, 2025 – Stocks in this week’s article are Phibro Animal Health (PAHC - Free Report) , Daktronics (DAKT - Free Report) , UP Fintech Holding Ltd. (TIGR - Free Report) and Gold Fields Ltd. (GFI - Free Report) .
4 Best PEG-Based Value Stocks to Buy for Market-Beating Returns
In periods when market volatility seems to strike every other day, many investors turn to value investing over strategies like growth or momentum. When uncertainty drives others to sell stocks at lower prices, value investors see it as a chance to scoop up companies with solid fundamentals at a discount.
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 — Phibro Animal Health, Daktronics, UP Fintech Holding Ltd. and Gold Fields Ltd..
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 very 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:
Phibro: Headquartered in NJ, Phibro 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, 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 has a Zacks Rank #2 and a Value Score of A. Phibro also has an impressive five-year expected growth rate of 12.8%.
Daktronics: It designs, manufactures and sells electronic scoreboards, programmable display systems, and large-screen video displays for sports, commercial, and transportation uses worldwide. It operates through Commercial, Live Events, High School & Recreation, Transportation, and International segments. Daktronics' products include video walls, scoreboards, LED message signs, intelligent transportation displays, transit and mass communication systems, sound systems, digital billboards, and price displays.
Daktronics currently has a Zacks Rank #1 and a Value Score of B. DAKT also has an impressive five-year historical growth rate of 59.5%.
UP Fintech: It offers online brokerage services for Chinese investors across New Zealand, the Cayman Islands, Singapore, the United States and other nations. Its Tiger Trade platform, available via app and web, enables trading in stocks, options, warrants and other securities. UP Fintech also provides value-added services, such as investor education, community features and IR solutions.
Apart from a discounted PEG and P/E, UP Fintech currently has a Zacks Rank #2 and a Value Score of B. TIGR has a long-term expected growth rate of 19.1%.
Gold Fields: It is a gold producer with mining reserves and resources across Australia, South Africa, Ghana, Peru, Chile and Canada. The company also engages in copper and silver exploration and is headquartered in Sandton, South Africa.
Gold Fields has a Zacks Rank #2 and a Value Score of B. GFI also has an impressive five-year expected growth rate of 36.4%.
You can see the complete list of today's Zacks #1 Rank stocks here.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2753666/4-best-peg-based-value-stocks-to-buy-for-market-beating-returns
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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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.