(FORTUNE Magazine) – One effective way to screen for "growth at a reasonable price," an investing approach pioneered by Fidelity's Peter Lynch, among others, is to use the price/earnings-to-growth, or PEG, ratio. It's calculated by dividing a company's P/E ratio by the rate at which the company is anticipated to boost its per-share earnings over the next three to five years. The lower the number, the better. To find bargain growers, we demanded PEG ratios no higher than half the 2.8 average of the S&P 500. We also screened for companies with P/E ratios below the S&P 500 average of 19 and projected profit growth of at least double the rate of the market over the next several years. To ensure a degree of financial health, we required a debt-to-equity ratio at or below 0.33. --D.S.

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June 24, 2005. Wall Street estimates for the next three to five years.

FORTUNE TABLE / SOURCE: ZACKS INVESTMENT RESEARCH