Vertex, a tax compliance software company, is presented as a "kicker stock" now entering a fair value range after being overvalued, with strong cash flow, sticky software, and expected 23% annual earnings growth.
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14 Growth Stocks With PEG Ratios Less Than 1 (GARP) | FAST Graphs
Aug 12, 2026
The creator, Mr. Valuation, discusses growth stocks with PEG ratios less than 1, emphasizing a Growth at a Reasonable Price (GARP) approach. He defines growth stocks as those with earnings growth of 15% or more and explains the PEG ratio concept introduced by Peter Lynch. The video aims to identify 14 such stocks that are not only growing well but are also fairly valued, acknowledging the higher risk associated with high-growth companies.
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Tickers discussed in this post
Western Digital is noted for its expected 60% annual growth and strong historical performance, but its cyclical nature and recent price surge followed by a correction make it a less certain pick.
Voya Financial is recommended as a choice among diversified financial companies, with analysts forecasting over 15% growth and a solid credit rating.
T-Mobile is presented as a strong opportunity with a nice dividend kicker, good operating cash flow covering debt, and expected future growth.
Baker Hughes is presented as an income stock with a 2.25% dividend yield and accelerated growth since 2022, offering a strong opportunity with a nice dividend kicker.
Charles Schwab is expected to grow at nearly 20% annually, with accelerating recent growth, and is considered a very strong company with a valuation that implies a 20% rate of return.
Raymond James Financial is a well-run financial company expected to grow at 17% with a PEG ratio of 0.88, trading slightly below its earnings growth rate and considered fairly valued by the market.
Oracle is expected to grow earnings at almost 29%, but its valuation appears inexpensive from a short-term forecasting view, though slightly overvalued from a long-term perspective due to slower historical growth.
Nvidia is presented as the purest growth story in AI, with exceptional growth rates and a PEG ratio of 0.85, making it a very cheap growth stock and undervalued.
KKR is a cyclical growth story with recent growth of 20%, and despite analyst reliability concerns, it offers good growth potential for evaluation.
