- 4 Best Low-PEG Value Stocks to Bet On for Higher Returns
May 15, 2026
At a time when volatility strikes every second day, investors often rely on value investing rather than other options like growth or momentum. As soon as other investors start selling their stocks at a cheaper rate in times of market uncertainty, value investors take this as an opportunity to pick good stocks at a discounted price.
Several stocks that have surged significantly in the recent past have shown the overwhelming success of this pure-play investment strategy. Here, we discuss four such stocks — DaVita DVA, Antero Resources AR, PBF Energy PBF and Popular BPOP.
However, this apparently simple value investment technique has some drawbacks and not understanding the strategy properly may often lead to “value traps.” In such a situation, these value picks start to underperform over the long run as the temporary problems, which once drove the share price down, turn out to be persistent.
There are many value investment yardsticks, such as dividend yield, P/E or P/B, which are simple and can single out whether a stock is trading at a discount.
However, for investors looking to escape such value traps, it is also vital to determine where the stock would be headed in the next 12 to 24 months. Warren Buffett advises these investors to focus on the earnings growth potential of a stock. This is where lies the importance of a not-so-popular value investing metric, the PEG ratio.
PEG Ratio at a Glance
The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate
A low PEG ratio is always better for value investors.
While P/E alone fails to identify a true value stock, PEG helps find the intrinsic value of a stock.
There are some drawbacks to using the PEG ratio. It doesn’t consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.
Hence, PEG-based investing can turn out to be even more rewarding if some other relevant parameters are also taken into consideration.
Here are some of the screening criteria for a winning strategy:
PEG Ratio less than X Industry Median
P/E Ratio (using F1) less than X Industry Median (for more accurate valuation purposes)
Zacks Rank #1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or 2 have a proven history of success.)
Market Capitalization greater than $1 billion (This helps us to focus on companies that have strong liquidity.)
Average 20-Day Volume greater than 50,000 (A substantial trading volume ensures that the stock is easily tradable.)
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Percentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5% (Upward estimate revisions add to the optimism, suggesting further bullishness.)
Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1, 2 or 3 (Hold) offer the best upside potential.
Our PEG-Driven Picks
Here are four stocks that qualified the screening:
DaVita: Denver, CO-headquartered DaVita is a leading provider of dialysis services in the United States to patients suffering from chronic kidney failure, also known as end-stage renal disease (ESRD). The company operates kidney dialysis centers and provides related medical services primarily in dialysis centers and in contracted hospitals across the United States. Its services include outpatient dialysis services, hospital inpatient dialysis services and ancillary services such as ESRD laboratory services and disease management services.
DaVita currently has a Zacks Rank #1 and a Value Score of A. DVA also has an impressive five-year expected growth rate of 20.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Resources: Denver, CO-based Antero Resources is an independent explorer, primarily engaged in the acquisition and development of natural gas, natural gas liquids and oil resources in the Appalachian Basin. It is one of the fast-growing natural gas producers in the United States. The company focuses on unconventional reservoirs. It holds around 542,000 net acres of oil and gas properties in the Appalachian Basin of West Virginia and Ohio. Antero Resources was established in 2002.
Apart from a discounted PEG and P/E, Antero Resources currently has a Zacks Rank #1 and a Value Score of B. AR has a long-term historical growth rate of 49.4%.
PBF Energy: Based in New Jersey, PBF Energy is a leading refiner of crude. Through five oil refineries and associated infrastructure in the United States, the company provides end products that comprise heating oil, transportation fuels, lubricants and many related products. The refineries can collectively process 1,000,000 barrels of crude every day.
PBF Energy has a Zacks Rank #1 and a Value Score of B. PBF also has an impressive five-year expected growth rate of 39.%.
Popular: The company is a full-service financial services provider with operations in Puerto Rico, the U.S. mainland and the U.S. and British Virgin Islands. Popular offers a comprehensive suite of banking and financial services, including retail and commercial banking, auto and equipment leasing and financing, mortgage loans, insurance, investment banking and broker-dealer services.
BPOP currently has a Zacks Rank #2 and a Value Score of B. Popular also has an impressive five-year expected growth rate of 13.2%.
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DaVita Inc. (DVA) : Free Stock Analysis Report
Popular, Inc. (BPOP) : Free Stock Analysis Report
PBF Energy Inc. (PBF) : Free Stock Analysis Report
Antero Resources Corporation (AR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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- 4 Best Low-PEG Value Stocks to Bet On for Higher Returns
May 15, 2026 · zacks.com
Low-PEG stocks like DaVita, AR, PBF and Popular stand out as value plays with strong growth potential and discounted valuations.
- Exchange-Traded Funds, Equity Futures Lower Pre-Bell Friday Amid Oil Surge, Higher Yields, Geopolitical Uncertainty
May 15, 2026
The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was down 0.9% and the actively tr
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- Why Popular (BPOP) is a Top Value Stock for the Long-Term
May 14, 2026 · zacks.com
The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
- Notable ETF Inflow Detected - KRE, EWBC, WAL, BPOP
May 12, 2026
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR S&P Regional Banking ETF (Symbol: KRE) where we have detected an approximate $263.9 million dollar inflow -- that's a 6.5% increase week over week in outstanding units (from 59,602,585 to 63,452,585). Among the largest underlying components of KRE, in trading today East West Bancorp, Inc (Symbol: EWBC) is down about 1.9%, Western Alliance Bancorporation (Symbol: WAL) is down about 3.1%, and Popular Inc. (Symbol: BPOP) is lower by about 2.1%. For a complete list of holdings, visit the KRE Holdings page » The chart below shows the one year price performance of KRE, versus its 200 day moving average:
Looking at the chart above, KRE's low point in its 52 week range is $55.37 per share, with $74.08 as the 52 week high point — that compares with a last trade of $67.27. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see: YTD Return
CBKW Insider Buying
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- Popular 1990s internet search giant shuts down
May 12, 2026 · nypost.com
The shutdown underscores how the once-crowded search industry has consolidated over time, leaving smaller or legacy platforms unable to compete at scale.
- Why Popular (BPOP) is a Great Dividend Stock Right Now
May 11, 2026
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in Hato Rey, Popular (BPOP) is in the Finance sector, and so far this year, shares have seen a price change of 19.67%. Currently paying a dividend of $0.75 per share, the company has a dividend yield of 2.01%. In comparison, the Banks - Southeast industry's yield is 2.02%, while the S&P 500's yield is 1.41%.
Looking at dividend growth, the company's current annualized dividend of $3.00 is up 3.4% from last year. Over the last 5 years, Popular has increased its dividend 4 times on a year-over-year basis for an average annual increase of 12.77%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Popular's current payout ratio is 22%, meaning it paid out 22% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for BPOP for this fiscal year. The Zacks Consensus Estimate for 2026 is $15.14 per share, with earnings expected to increase 24.61% from the year ago period.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that BPOP is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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Popular, Inc. (BPOP) : Free Stock Analysis Report
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- Why Popular (BPOP) is a Great Dividend Stock Right Now
May 11, 2026 · zacks.com
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Popular (BPOP) have what it takes?
- A Look At Popular (BPOP) Valuation As Shares Trade Below Estimated Fair Value
May 9, 2026
Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St.
Popular stock reacts to recent performance data
Popular (BPOP) has been drawing attention after recent return figures and fundamental metrics put fresh focus on the bank’s valuation. Investors are weighing its share price against reported earnings and revenue trends.
See our latest analysis for Popular.
Recent trading has been mixed, with a 1-day share price return of a 0.81% decline and a 7-day share price return of a 1% decline, set against a 30-day share price return of 5.08% and strong longer term total shareholder returns over 1, 3 and 5 years. This points to momentum building over time as investors reassess Popular’s earnings and risk profile relative to its current US$148.83 share price.
If Popular’s run has you thinking about what else might be setting up for future gains, it could be worth scanning 18 top founder-led companies
With Popular trading at US$148.83 against an analyst price target of US$171.22 and an indicated intrinsic value gap, the key question is whether the stock is still undervalued or if the market is already pricing in expectations for the company.
Most Popular Narrative: 13.1% Undervalued
Popular's most followed valuation narrative points to a fair value of $171.22 per share, which is above the recent $148.83 close and highlights the current discount.
Ongoing investments in digital infrastructure, including the launch of a new digital platform for commercial cash management and branch modernization, are expected to enhance customer acquisition, retention, and operational efficiency, supporting long-term revenue and margin expansion.
Read the complete narrative.
Curious what kind of revenue path and profitability profile need to line up to support that higher value, and how analysts think Popular gets there over time.
Result: Fair Value of $171.22 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the story can change quickly if Puerto Rico faces economic or political stress, or if slower digital adoption allows fintech competitors to gain more ground.
Find out about the key risks to this Popular narrative.
Next Steps
If this mix of optimism and caution has you thinking, take a moment to review the numbers yourself and stress test your own thesis using the 5 key rewards
Looking for more investment ideas?
Do not stop your research with one stock; broaden your watchlist now and give yourself more options before the next big move passes you by.
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Target dependable income by reviewing 12 dividend fortresses built around companies offering higher yields with a focus on durability. Hunt for quality at a discount using 51 high quality undervalued stocks that filters for strong fundamentals paired with attractive pricing. Prioritize capital preservation with 72 resilient stocks with low risk scores designed to surface companies with more resilient profiles.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include BPOP.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Popular, Inc. Declares a Cash Dividend of $0.75 per Common Share
May 8, 2026
SAN JUAN, Puerto Rico, May 08, 2026--(BUSINESS WIRE)--Popular, Inc. (NASDAQ: BPOP) announced today that its Board of Directors has approved a quarterly cash dividend of $0.75 per share on its outstanding common stock. The dividend will be payable on July 1, 2026 to shareholders of record at the close of business on May 29, 2026.
About Popular, Inc.
Popular, Inc. (NASDAQ: BPOP) is the leading financial institution by both assets and deposits in Puerto Rico and ranks among the top 50 U.S. bank holding companies by assets. Founded in 1893, Banco Popular de Puerto Rico, Popular’s principal subsidiary, provides retail, mortgage and commercial banking services in Puerto Rico and the U.S. and British Virgin Islands, as well as auto and equipment leasing and financing in Puerto Rico. Popular also offers broker-dealer and insurance services in Puerto Rico through specialized subsidiaries. In the mainland United States, Popular provides retail and commercial banking services through its New York-chartered banking subsidiary, Popular Bank, which has branches located in New York, New Jersey and Florida.
Financial (English): P-EN-FIN
View source version on businesswire.com: https://www.businesswire.com/news/home/20260508665845/en/
Contacts
Popular, Inc.
Investor Relations:
Paul J. Cardillo, 212-417-6721
Senior Vice President and Investor Relations Officer
pcardillo@popular.com
or
Media Relations:
MC González Noguera, 917-804-5253
Executive Vice President and Chief Communications & Public Affairs Officer
mc.gonzalez@popular.com
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