With a long-term perspective: 5 stocks from different sectors which fit the bill on a more important, but less used ratio

Heard of the PEG ratio? When looking at long-term investments, it is a better ratio to use than the PE ratio. For one, it helps you avoid stocks which might appear cheap but actually are not value buys. Again, in sectors that are cyclical in nature, looking at the PE matrix alone may lead to wrong decisions. In the PEG ratio, one of the variables is growth. But growth itself is a function of many variables and that is the challenge you need to navigate when using PEG. It is also the reason why not many use this ratio frequently. But the effort will pay off in terms of helping you identify the right stocks.