Growth vs value?

A question often asked is weather its better to have a growth or value strategy. But growth and value are connected.

A stock that has good value but low growth will not be worth a lot more than its current price, because the earnings per share will not get better. A growth stock that is above good valuation is not that good either. The stocks has already discounted much of the growth in its price.

So a really good stock must be cheap and grow fast at the same time. This is why many are no longer looking at only the price earnings ratio(p/e ratio). But look at the price earnings growth ratio (peg ratio). This metric looks at the current stock price you have to pay for the earnings per share but ads the growth in the equation.

Stocks that are mis priced can often be found in the emerging markets and commodities sector. Stocks can be found here that are both cheap and fast growing which is the best of both world you need.