Key Tech Stock Expected PEG Ratios Fall Below 1

With the Tech sector's double-digit declines to start 2008 as well as its expected double-digit earnings growth over the next few quarters, many stocks in the sector have seen their PEG (p/e to growth rate) ratios fall well below one. A PEG ratio below one is seen as cheap for a Tech stock.

Currently, stock prices are completely underestimating forward earnings estimates, and if earnings can even come inline with forecasts, it will leave valuations at extremely attractive levels. Below we highlight Russell 1,000 tech stocks with PEGs less than one. As highlighted with red shading, many stocks are already down more than 10% year to date on no news.

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Comments

[Dan Jacome:]

RVBD - 15% after Q4 EPS....they are cutting prices to lock in share, stock is down hard in last couple of months....stock went from 50 to 19 in a hurry, avoiding it for now.

2008 Feb 05 06:05 PM