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If you are an investor who likes to hunt for bargains, but want to make sure you aren't picking up any duds, it is key to take a scrutinizing look before you buy. Today we focused on financial stocks. First we identified financial stocks that appear to be undervalued. From there, we culled those that have high projected earnings. The list today might surprise you, we hope you find it interesting.

The PEG ratio (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company's expected growth. In general, the P/E ratio is higher for a company with a higher growth rate. Thus using just the P/E ratio would make high-growth companies appear overvalued relative to others. It is assumed that by dividing the P/E ratio by the earnings growth rate, the resulting ratio is better for comparing companies with different growth rates. A lower ratio is 'better' (cheaper) and a higher ratio is 'worse' (expensive)—a PEG ratio of 1 means the company is fairly priced.

The Price/Book Value Ratio is a great price-multiple valuation metric to find companies that could be potentially undervalued or overvalued. If a firm has a Price/Book Value Ratio of less than 1 it is stated to be trading below break up value. A lower P/BV Ratio can indicate a potentially mispriced company or indicate that something is fundamentally wrong with it.

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.

We first looked for financial stocks. From here, we then looked for companies that appear undervalued to earnings growth (PEG < 1)(P/BV<1). We then looked for businesses that have high future earnings per share growth forecasts(1-year projected EPS Growth Rate>25%). We did not screen out any market caps.

Do you think these stocks are in strong positions for future growth? Use our screened list as a starting point for your own analysis.

1) Morgan Stanley (NYSE:MS)

Sector:Financial
Industry:Investment Brokerage - National
Market Cap:$26.77B
Beta:1.60

Morgan Stanley has a Price/Earnings to Growth Ratio of 0.86, a Price/Book Value Ratio of 0.44, and a 1-Year Projected Earnings Per Share Growth Rate of 117.78%. The short interest was 1.85% as of July 30, 2012. Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide.

The company's Institutional Securities segment offers financial advisory services on mergers and acquisitions, divestitures, joint ventures, corporate restructurings, recapitalizations, spin-offs, exchange offers, leveraged buyouts, takeover defenses, and shareholder relations, as well as capital raising and corporate lending services. This segment also engages in investment activities; and sales, trading, financing, and market-making activities, including equity trading, interest rates, credit and currencies, and commodities, as well as financing services, such as prime brokerage, consolidated clearance, settlement, custody, financing, and portfolio reporting services.

2) Meadowbrook Insurance Group Inc. (NYSE:MIG)

Sector:Financial
Industry:Property & Casualty Insurance
Market Cap:$334.88M
Beta:0.78

Meadowbrook Insurance Group Inc. has a Price/Earnings to Growth Ratio of 0.95, a Price/Book Value Ratio of 0.57, and a 1-Year Projected Earnings Per Share Growth Rate of 116.33%. The short interest was 3.44% as of July 30, 2012. Meadowbrook Insurance Group, Inc., through its subsidiaries, operates as a specialty commercial insurance underwriter and insurance administration services company in the United States.

The company markets and underwrites specialty property and casualty insurance programs and products, including workers' compensation, general liability, commercial property, environmental, garage, commercial multi-peril, commercial auto, surety, and marine insurance on an admitted and non-admitted basis through a network of independent retail agents, wholesalers, program administrators, and general agents.

It also offers program and product design, underwriting risk selection and policy issuance, claims administration and handling, loss prevention and control, risk-bearing entities administration, and retail property and casualty insurance agency services, as well as produces commercial, personal lines, life, and accident and health insurance with unaffiliated insurance carriers for its fee-for-service and agency clients.

3) The Phoenix Companies Inc. (NYSE:PNX)

Sector:Financial
Industry:Life Insurance
Market Cap:$202.36M
Beta:3.56

Phoenix Companies Inc. has a Price/Earnings to Growth Ratio of 0.24, a Price/Book Value Ratio of 0.21, and a 1-Year Projected Earnings Per Share Growth Rate of 32.35%. The short interest was 7.22% as of July 30, 2012. The Phoenix Companies, Inc., through its subsidiaries, provides life insurance and annuity products through independent agents and financial advisors in the United States. The company's life insurance products include whole life, universal life, and variable universal life products. Its annuity products comprise fixed indexed annuities, fixed annuities, single premium immediate annuities, and variable annuities.

4) Greenlight Capital Re, Ltd. (NASDAQ:GLRE)

Sector:Financial
Industry:Property & Casualty Insurance
Market Cap:$867.40M
Beta:0.75

Greenlight Capital Re, Ltd. has a Price/Earnings to Growth Ratio of 0.77, a Price/Book Value Ratio of 1.00, and a 1-Year Projected Earnings Per Share Growth Rate of 42.17%. The short interest was 3.27% as of July 30, 2012. Greenlight Capital Re, Ltd., through its subsidiaries, operates in the property and casualty reinsurance business in the United States, Europe, the Caribbean, and internationally.

The company's frequency business includes contracts containing smaller losses emanating from multiple events and enables the clients to increase their own underwriting capacity; and severity business consists of contracts with the potential for significant losses emanating from one event or multiple events. It offers personal and commercial property, general and marine liability, motor liability, motor physical damage, professional liability, financial, health, medical malpractice, and workers' compensation reinsurance products.

*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Yahoo Finance.

Source: 4 Quick Growing Financial Stocks At Discount Prices