Related tickers: JPMorgan Chase & Co. (NYSE:JPM), The Boeing Company (NYSE:BA)
With the figures from 2013’s first financial quarter now out, investors will be very keen to analyze various indicators that could predict the evolution of different stocks in the months to come. One indicator analysts have focused their attention on is the PEG ratio (price-to-earnings/earnings growth).
While there is a broad consensus that ideally the PEG ratio should be below 1, only one Dow Jones stock has managed this performance. However, the other nine stocks included in our top ten have acceptable PEG ratios and will merit the attention of investors.
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JPMorgan Chase & Co. (NYSE:JPM) has been under the spotlight of stock market analysts since the beginning of the year and reviews on the company tend to have a positive tone to them. JPMorgan Chase & Co. (NYSE:JPM), boasting a market capital of $185.55 billion, has experienced a slow, but constant growth over the past few months, with share prices increasing by more than $4 since the beginning of 2013 to where they are now ($48.96). Its PEG ratio of 1.24 has landed JPMorgan Chase & Co. (NYSE:JPM) on the fourth spot in our countdown, further consolidating the idea that the company will continue its upward move.
Another stock market favorite that has made the top ten, with a PEG ratio of 1.27, is The Boeing Company (NYSE:BA). Share prices for this corporation have also experienced a steady increase since January 2013 (approximately $75) to the present day ($94.24). The Boeing Company (NYSE:BA)’s PEG ratio, which has landed the company on the fifth spot, is a strong indicator that share prices will continue to go upwards in the second quarter of 2013.
We would like to present 10 Dow Jones stocks that currently have the lowest PEG ratios in the index. Apart from JPMorgan Chase & Co. (NYSE:JPM) and The Boeing Company (NYSE:BA), the countdown also includes General Electric Company (NYSE:GE) and International Business Machines Corp. (NYSE:IBM),
So, let’s take a look at the top ten.
No. 10: Cisco Systems, Inc. (NASDAQ:CSCO)
Market Capital: 112.50B
PEG ratio: 1.47
Price: $21.10
No. 9: General Electric Company (NYSE:GE)
Market Capital: 237.49B
PEG ratio: 1.45
Price: $22.90
No. 8: International Business Machines Corp. (NYSE:IBM)
Market Capital: 226.71B
PEG ratio: 1.34
Price: $204.47
No. 7: United Technologies Corporation (NYSE:UTX)
Market Capital: 87.56 B
PEG ratio: 1.33
Price: $92.25
No. 6: Travelers Companies Inc (NYSE:TRV)
Market Capital: 32.56 B
PEG ratio: 1.31
Price: $86.49
No. 5: The Boeing Company (NYSE:BA)
Market Capital: 71.50 B
PEG ratio: 1.27
Price: $94.24
No. 4: JPMorgan Chase & Co. (NYSE:JPM)
Market Capital: 185.55 B
PEG ratio: 1.24
Price: $48.96
No. 3: Intel Corporation (NASDAQ:INTC)
Market Capital: 121.79 B
PEG ratio: 1.13
Price: $24.50
No. 2: UnitedHealth Group Inc. (NYSE:UNH)
Market Capital: 64.20 B
PEG ratio: 1.11
Price: $62.91
No. 1: Caterpillar Inc. (NYSE:CAT)
Market Capital: 58.27 B
PEG ratio: 0.85
Price: $88.62
