Stocks that are currently undervalued on a technical and fundamental basis, that are expected to grow in the future, and are positively rated by Wall Street analysts, who are also buying the stock it themselves.
That is the stockcamel buy list, published daily.
It is important that investors understand the difference between trading and investing. Trading is no different than gambling at a casino. You win some, you lose some. Everyone is a genius trader when the market is moving up, which is most of the time anyway. The difference is that investors understand they are proactively committing their time and money in directly owning a piece of the business they are buying shares in. Stock ownership of a corporation is a commitment and a representation of your conviction and belief in the future vision and expansion of the business, which you hope to profit from.
stockcamel is here to provide a shortlist of profitable businesses, that are expected to grow and are currently undervalued. It's up to you to decide which one you would like to own - the list gives you a great starting point.
A PEG ratio of 1 indicates that the stock is fairly priced. A ratio between 0.5 and 1 is considered good, meaning the stock is undervalued given its growth expectations. A ratio less than 0.5 is considered to be excellent, and that the stock is very undervalued.
The PEG ratio is a useful tool in measuring whether a stock is fairly valued, undervalued or overvalued. It is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share, and the company's expected growth. PEG ratio is a stock's price-to-earnings (P/E) ratio divided by the growth rate of its earnings for a specified time period.
Investing in stocks with a low PEG ratio - meaning undervalued stocks based on their current valuation and future growth expectations has historically yielded fruitful results, as shown in a study found here.
There are many ways on going about finding undervalued stocks. Most commonly, investors will look to technical analysis, or charting - searching for stocks with 52 week lows, or that have passed the oversold mark on popular indicators such as the Relative Strength Index (RSI).
Alternatively, investors analyze corporate balance sheets, profit projections, a companies overall financial health. Fair market valuations can then be deduced based on these fundamental metrics for what a companies stock 'should' be worth.
stockcamel takes a unique approach to this question by looking at equity valuations both on a technical and fundamental basis. stocks with low PEG ratios - those that are undervalued on a fundamental basis, expected to grow but currently much cheaper than they should be priced, along with technical analysis - analyzing whether the stock is undervalued relative to it's historical pricing. Add these filters to stocks that Wall Street analysts have 'buy' or 'strong buy' ratings for, and institutions such as professional investment firms are buying themselves, produces the robust stockcamel buy list.
Long term investing is typically considered an investment of over 5 years, whereas short term investing is less than 5 years.