11 Low PE Stocks with High Earnings Growth Rates

I am being very selective about purchasing common stock. In fact, my Speculative and to a lesser extent my Permanent Portfolio(s) consist of a higher percentage of bonds, preferred stocks and commodities, almost all via ETFs. Rental real estate has been advanced to a higher amount than ever in my holistic portfolio, as well as tax strategies to keep what I earn. Not one who is prone to panic with each day's news, I try to be well read from a variety of viewpoints, especially the Financial Times and Wall Street Journal, a few blogs and Bloomberg, for starters. I also subscribe to a few eclectic financial and economic publications that I may discuss in a future post.

I am concerned about inflation, creeping socialism, the geo-political status of world hot spots and the victim mentality that appears to be resonating from a form of class warfare not seen in the United States since the 1870s. That said, there is always a bull market somewhere and I have been toying with various stock screens to find gems for possible inclusion to my holdings.

The following stocks have current (and projected) earnings growth of at least 25% and a relatively low PE and PEG ratio. Perhaps you may wish to research them further to see if they are your cup of tea:

1. (AGO) Assured Guarantee (Insurance, Re-Insurance) trading recently at $14.00 with an EPS of 128%.
2. (CAST) Chinacast Education Corporation (Schools) trading recently at $5.50 with an EPS of 80%.
3. (DENN) Denny's (Restaurants) trading recently at $2.50 with an EPS of 67%.
4. (MPAA) Motorcar Parts of America (Auto and TRuck Parts) trading recently at $4.50 with an EPS of 59%.
5. (LRN) K12 (Schools) trading recently at $16.70 with an EPS of 58%.
6. (HGRD) Health Grades (Business Services) trading recently at $3.70 with an EPS of 47%.
7. (CRTP.OB) China Ritar Power (Electric Inst. and Controls) trading recently at $2.00 with an EPS of 45%.
8. (DCP) DynCorp (Transportation) trading recently at $14.75 with an EPS of 42%.
9. (EGMI) Electronic Game Card (Casinos and Gaming) trading recently at $0.90 with an EPS of 40%.
10. (CGA) China Green Agriculture (Chemical Manufacturing) trading recently at $7.50 with an EPS of 36%.
11. (HXM) Homex Development (Real Estate Operations) trading recently trading at $26.70with an EPS of 27%.

Granted, all of these stocks are growing earnings after some weak fiscal 2008 results. Comps are interesting all over the investment spectrum in this market cycle. But they appear on the right track this year and beyond, and perhaps worth a look as a speculation within your portfolio.

Comments

[Paul Price:]

Could you find a more obscure group of companies?

This is the problem when computer screening takes the place of human research with thought attached.

Jun 04 08:13 AM

[PhilV:]

Not for me. I'll take company's I can find that have earnings, history, stability.
Thanks anyway.

Jun 04 09:49 AM

[ain't no fo...:]

Thanks for the lineup... looking at CGA, has some good fundamentals.

Jun 04 12:05 PM

[joes:]

K12 is an interesting company, a consulting project with a local education technology company introduce me to the company.

I haven't added K12 yet, but now that a position in Bridgepoint Education has been liquidated through a pretty sweet IPO it makes sense to re-enter that sub-sector.

There are some regulatory pressures in the educational field that create uncertainty that rivals the banks problems. SInce legislators are often the senior managers of the educational systems decisions to limit enrollments to a certain percentage and cap per student tuition rates K12 needs a new business model for every state.

If this ever gets cleared it looks like companies like K12 will change the mode of education to a more continual process with multiple devices and locations for delivery. Amazon is positioned to do well with it's Kindle platform providing a distribution and payment method to text book publishers.

Following the money in these supply chain transformations can be profitable but difficult to time, so you need to be able to sit on the stock for a while and there is no reason to hurry your decision.

Jun 04 12:17 PM

[22thoroughbred:]

Paul, obscure is good, unless you want to just buy the top 20 in the S&P 500 and be a sheep...what advantage is there in buying a stock that everyone already owns and all mutual funds already own, there's no upside there, I have been investing since I was around 15, I am now 48 and have made the most money buying "obscure" companies than selling them when everyone else discovers them, I would rather have a 10 bagger than make 7-10%, but that's just me.

Jun 04 09:39 PM

[Speedspirit:]

Researched your stocks and they are all trading at thier highs. No gains to gain here unless some great news. Looking like a pump and dump.

Jun 05 06:52 AM

[Henassoc:]

I own a bunch of EGMI already and so does a bunch of people I know. Anyone who thinks EGMI is anywhere near its high for the year does not know anything about EGMI. Expecting 2 new announcements from the company this month. I will be very surprised if EGMI is not north of $3 before the end of the year.

Jun 05 01:25 PM

[Edward D. J...:]

I also own EGMI. Have for a couple months. I see large profits in the next year or so. Probably at least a double on price.

Jun 10 10:44 PM

[ari5000:]

interesting group:


What software did you use to screen?

Jul 07 08:54 AM