A Look At Industrial Stocks By Relative P/E and PEG

Last Thursday we profiled stocks in the Technology sector based on two fundamental measures. Today we take a look at stocks in the S&P 500 Industrials sector. We again calculated their relative PEG (price/earnings to growth) and P/E (price to earnings) ratios.

Relative PEG compares the PEG ratio of the stock with the average PEG ratio of the group. A relative PEG less than 1 means it's better than average. The same holds true for the relative P/E ratio. Below we have broken up the Industrials sector into its 3 groups and sorted the stocks in each group by the sum of their relative PEG and P/E. The stocks with the lowest sum currently look the best based on these two criteria.

In the Capital Goods group, TEX and CMI currently look the best even though they have both made significant gains this year. Deere (DE) and FLR, also stocks that have had strong years, rank at the bottom of the Capital Goods list.

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In the Commercial Services & Supplies group, RRD and RHI look the best while MNST and WMI look the worst. In the Transportation group, NSC and R look strong while UPS and LUV look weak.