Long-term wealth creation: 6 stocks with the right PEG ratio

Pharma stocks had been underperforming for a very long time. Some time USFDA issues, at other instances of pricing pressure in US markets have been troubling the sector. However some tailwinds have emerged recently, shortage in some segments in the generic market in the US have led to sharp spikes in prices. The list is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list.

Recent reports indicate a decline in cement prices, causing a significant correction in cement stocks. However, it's important to consider broader factors before making investment or trading decisions in the cement sector. Despite a temporary price dip, the sector continues to benefit from increased demand driven by infrastructure projects and improved balance sheet quality. This suggests the sector's long-term prospects remain intact despite short-term price fluctuations.

One of the reasons why looking only at Price earning (PE) ratio leads to wrong decisions, is that by the time PE gets adjusted to newly announced earnings per share (EPS), it is too late. Especially in the case of commodity stocks, PE ratio is probably the last thing to look at as it creates a mirage of value.

Because it is easy to calculate and understand among the valuation ratios, PE ratio often acts as an anchor when investors are making investment decisions. Given the huge difference in what is value and what looks cheap due to one financial ratio, more often than not, relying on PE may lead to wrong investment decisions

Sitharaman, did a comprehensive review with CBIC and covered a variety of work areas, including trade facilitation, tax payer services, grievance redressal of the trade and finalisation of disciplinary cases and infrastructure projects,

Capital good companies had faced tough times for many years. Given the fact that hardly any capacity buildup was taking place in any industry, a number had to change their product portfolio and had to live with very low margins. But all the efforts have now started to show some results. Given the performance of the stock, a large majority of these stocks have hold recommendations from the analysts.

Cement has been a sector where most of the analysts have been caught off guards. The stocks have done well and a large number of analysts have been sticking to their stands that pricing and capacity utilization is an issue. What they probably ignored was the fact that any industry which has been facing headwinds for a long time tends to sort the issues and few players are able to make a comeback as consolidation takes place. Pretty much what we have seen in power.