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Here are 10 GARP (Growth at a Reasonable Price) stocks that have a forward price earnings ratio (P/E) under 10.

Arch Coal (ACI): P/E 19.02, forward P/E 6.30, PEG 0.11. Dividend/Yield 0.44/1.7%: Coal still accounts for about 50% electricity generation in the US. China needs to import the new black gold. Australia’s coal industry is still hurt by floods and pending carbon tax legislation. Arch recently closed on the purchase of ICO, which should be accretive to earnings in 2012 and recently increased the dividend 10%. Coal CEOs talk of a super cycle of coal this decade.

Dryships (DRYS): P/E 6.47, forward P/E 4.45, PEG 0.47: The BDI continues to bounce along the bottom and has taken the drybulk shippers with it. Dryships continues to improve its balance sheet and purchase new ships for shipping and deep water drilling for its Ocean Rig subsidiary. It plans to IPO Ocean Rig in the US, which should bring about a $2 billion windfall to continue to improve the balance sheet and add to its fleet. It is also possible shareholders of Dryships will receive shares in Ocean Rig once it is spun-off.

Amtech Systems (ASYS): P/E 8.55, forward P/E 7.71, PEG 0.21. Amtech has reported tremendous growth in earnings and revenue last quarter and a rising backlog of orders. The company reported a $7.5 million profit, 0.77 EPS, on $61.3 million revenue. Compare this with the second quarter of the previous year $206k profit, 0.02 EPS, on $16 million revenue. The recent happenings with natural disasters affecting nuclear plants (see Japan and now Nebraska) should turn people’s attention back to solar (as well as coal).

Newcastle Investment Corp. (NCT): P/E 0.60, forward P/E 1.37, PEG 0.44. Dividend/Yield 0.40/7.2%. Real estate overall is still not performing, but in the teflon northeast market where Newcastle is located that is not the case. Its mix of commercial and residential paper has performed well and the company has added to investments with an expected average return of 18% on its investments. Only $20 million of the portfolio remains on negative watch. The common dividend was also recently reinstated at 0.40 annually.

Best Buy (BBY): P/E 10.11, forward P/E 8.42, PEG 0.94. Dividend/Yield 0.64/2%. Best Buy has refocused itself on concentrating on selling the hot item, which is currently smartphones. It still has Amazon (AMZN) as a main competitor, but has vanquished its brick and mortar competitors and can offer a store experience that Amazon cannot. The dividend was recently boosted by 7% and the company announced a $5 billion share buyback program. While it is tough to see now there could be three future long-term earnings drivers as the economy improves in the years ahead, which are a new cycle in game consoles and handhelds, a new retail PC cycle, and 3D TV.

Ford (F): P/E 7.6, forward P/E 6.76, PEG 0.80. The new management has done a terrific job in turning around the company and avoiding bailouts. The company has momentum to build upon and has better focus with its slimmed down fleet. The stock is approximately 30% off its 52-week high and has support around the $13 range.

Archer-Daniels-Midland (ADM): P/E 9.12, forward P/E 8.71, PEG 0.92. Dividend/Yield 0.64/2.2%. The long-term statistics, projections, studies, et al all suggest on pullbacks buy companies in the ag sector. Archer-Daniels-Midland is one of the cheapest, on a P/E basis, and higher yielding ag companies. It is also one of the more diversified ag companies as well.

Hewlett-Packard (HPQ): P/E 8.6, forward P/E 6.53, PEG 0.76. Dividend/Yield 0.48/1.4%. PCs are once again unloved so the contrarian in me needs to take a look. Tablets have put the fear in investors regarding PC companies. I think it more likely tablets replace laptops than the traditional PC, but even if tablets do replace the PC it is going to take a long time for that scenario to develop. There will be plenty of time for the PC companies to change business models to servers, tablets, or whatever else can be thought of in the future.

Sanofi-Aventis (SNY): P/E13.96, forward P/E 8.48, PEG 8.47. Dividend/Yield 1.32/3.6%. The extremely high PEG is due to patent expirations of some drugs, however, analyst estimates are still $4.80 for 2011, $4.45 for 2012, and $4.17 for 2013, which is still more than enough to cover that nice dividend. With over $8.5 billion of cash on hand I would expect the company to continue to go shopping to refill its pipeline and/or strike partnerships and pay investors while they wait.

Industrial Services of America (IDSA): P/E 8.02 forward P/E 5.96, PEG 0.27. If you are bullish on coal (see Arch Coal in this article) then you have to be bullish on steel. As steel and coal prices rise that bodes well for the scrap metal industry. Growing population trends also produce more garbage, which also bodes well for the waste management and recycling segment of the company.

Disclosure: I am long ACI, DRYS, ASYS, NCT.

Source: 10 GARP Stocks With Forward P/Es Under 10