Peter Lynch is one of the most well-known and respected stock investors. Lynch’s mutual fund performance, while working for Fidelity is immaculate.
Per Wikipedia:
Peter Lynch is an American investor, mutual fund manager, and philanthropist. As the manager of the Magellan Fund at Fidelity Investments between 1977 and 1990, Lynch averaged a 29.2% annual return, consistently more than double the S&P 500 stock market index and making it the best-performing mutual fund in the world.
In this scan, we take a tip from Peter Lynch. He prefers stocks with the criteria shown below. The only alteration we made was making the scan U.S.-centric and excluding stocks with a market cap below $100 million.
The initial scan yielded 22 stocks. To whittle the list down to five stocks, we ranked the stocks by the criterion equally and chose the five with the best average rankings.
Screening Criteria
- Market capitalization <$5 billion
- Country = USA
- Trailing P/E <25
- Forward P/E <15
- Debt to Equity <35%
- EPS Growth >15% (last five years)
- PEG ratio <1.2
Company Summaries
Hudson Technologies (HDSN)
Pinnacle Financial Partners (PNFP)
Liberty Energy (LBRT)
Cavco Industries (CVCO)
Assertio Holdings (ASRT)
Disclosure
This report is not a recommendation to buy or sell the named securities. We intend to elicit ideas about stocks meeting specific criteria and investment themes. Please read our disclosures carefully and do your own research before investing.
Michael Lebowitz, CFA is an Investment Analyst and Portfolio Manager for RIA Advisors. specializing in macroeconomic research, valuations, asset allocation, and risk management. RIA Contributing Editor and Research Director. CFA is an Investment Analyst and Portfolio Manager; Co-founder of 720 Global Research.
Follow Michael on Twitter or go to 720global.com for more research and analysis.
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