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3 Stocks with Low PEG Ratios for Your Watch List

October 10, 2025·24 min·2 clips

Pinterest uses AI to boost ad revenue, with global user growth despite being overlooked by many investors.

This episode of the Value Investor Podcast features host Tracy Reineck identifying three stocks with low PEG ratios for a watch list. Reineck focuses on combining value and growth investing principles in a market dominated by growth stocks. The PEG ratio, which divides a stock's price-to-earnings ratio by its earnings growth rate, serves as the episode's primary screening tool. Reineck explains she used a Zacks Premium screen to find stocks with a PEG ratio under one, a share price above $5, and an average broker recommendation of 2.5 or better. The screen yielded 17 stocks, many of which were foreign companies in finance, online payments, and video games. The host selects three U.S.-based companies for discussion, all with an AI component driving their growth. The first stock is Skillsoft (SKIL), a small-cap company with a market value of $128 million and a forward P/E of 4.2. Skillsoft's PEG ratio is 0.42, and it is undergoing a transformation into a talent development and AI-native skills platform. The second stock is Pinterest (PINS), which has a PEG ratio of 0.54 and a forward P/E of 18.2. Reineck notes the platform remains popular with users under 20 and is leveraging AI tools for advertising and shopping features. The third stock is Micron Technology (MU), a semiconductor company with a PEG ratio of 0.39 and a forward P/E of 11.2. Micron recently reported a record fiscal year, with earnings for fiscal 2025 up 537% and data center business driving growth. A surprising insight is that Skillsoft, while showing positive earnings after years of losses, is expected to see earnings decline 19.6% this fiscal year despite its low valuation. Pinterest's monetization is heavily skewed, with U.S. average revenue per user at $7.29, while the "rest of world" segment is only $0.19. Micron's earnings consensus for fiscal 2026 jumped from $13.05 to $16.58 after its latest report, indicating significant analyst bullishness. Reineck observes that all three stocks are tied to AI growth, a sector where she believes investors must accept more risk to find value currently. The host suggests small-cap stocks like Skillsoft may need a broader small-cap market rally to gain significant momentum. She notes Pinterest's share price often gets a boost after earnings reports as the market "remembers" its performance. The cyclical nature of Micron's business is highlighted, with the understanding that its current cheap valuation is tied to a surge period. The tone is educational and conversational, guiding listeners through a specific stock-screening methodology. The style is analytical, with Reineck walking through financial metrics, business models, and market contexts for each company. Value investors seeking growth at a reasonable price will appreciate this episode's focused, metric-driven approach. Listeners interested in small-cap stocks or AI-related investments may find specific ideas for their watch lists. Investors who prefer narrative-driven content or macroeconomic analysis over fundamental stock screening might find this episode too granular.

As heard by us

A brisk value and growth screen built around PEG.

The episode turns on a simple question: which stocks can still look cheap while growth keeps the market hot? Tracy Reineck gets right to the PEG ratio, walks through the math without fuss, and uses Benjamin Graham as context without turning it into a lecture.

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Why you'd press play

Cheap growth names when the market keeps making value harder to find.

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