The bargain growth collection below is premised on strategies used by Peter Lynch, the renowned ex-manager of Fidelity Magellan.
Lynch did not participate in our search process, but we based our screen on one of Lynch's favorite measures, the price/earnings-to-growth, or PEG, ratio: a company's P/E ratio divided by the rate at which its per-share earnings are projected to grow over the next three to five years.
We used it to hunt for what Lynch calls "stalwarts," blue chips whose shares could gain 30% to 50% over the next couple of years if they can be purchased at the right price.
Last year's bargain growth portfolio slightly outpaced the market, rising 23%.
Company
(Ticker symbol) |
Current
price |
52-wk
high |
52-wk
low |
Market
Cap (mill) |
P/E |
PEG
Ratio |
Earnings
growth |
Debt/Equity
Ratio |
| 3M (MMM) |
$84.98 |
$89.03 |
$67.05 |
$61,203.02 |
18.5 |
1.6 |
11% |
0.18 |
| AIG (AIG) |
$72.16 |
$72.97 |
$57.52 |
$187,200.14 |
11.4 |
1.0 |
11% |
0.2 |
| Accenture (ACN) |
$39.38 |
$41.84 |
$25.68 |
$30,657.13 |
21.7 |
1.4 |
14% |
0 |
| Chubb (CB) |
$54.00 |
$55.99 |
$46.94 |
$21,679.92 |
9.5 |
1.0 |
10% |
0.24 |
| ConocoPhillips (COP) |
$77.64 |
$79.91 |
$54.90 |
$126,894.82 |
8.4 |
1.2 |
8% |
0.28 |
| McKesson (MCK) |
$61.74 |
$63.90 |
$44.60 |
$18,363.76 |
20.9 |
1.4 |
14% |
0.29 |
| Microsoft (MSFT) |
$29.97 |
$31.48 |
$21.46 |
$286,726.80 |
21.3 |
1.6 |
13% |
0 |
| United Health (UNH) |
$52.87 |
$57.10 |
$42.90 |
$70,848.39 |
17.7 |
1.0 |
15% |
0.26 |
Current price, 52-week high/low and market cap as of Jun 12 13:20
P/E based on earnings for the last 12 months.
Earnings growth based on analyst projections for the next five years, according to Baseline. |
