🚨 This Sale Won't Last.. 10 Growth Stocks to BUY NOW

Smart Money
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Sep 10, 2026
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Video Summary
AI GeneratedThis video explains how to identify undervalued high-growth companies in an expensive market using the PEG ratio. By comparing the P/E ratio to expected earnings growth, investors can determine if a stock's price is justified by its growth potential, rather than relying on P/E ratios alone.
After years of strong gains, especially in technology and AI, most investors are pretty
much asking the same question.
Am I buying a great company, or am I simply overpaying for a great story?
But here's where things get interesting.
Even in what many investors consider an expensive market, there are still high-growth companies
whose expected earnings growth may actually justify, or potentially exceed, what you're
paying for them.
One of my favorite ways to find these types of companies comes from legendary investor
Peter Lynch.
This is called the PEG ratio.
It takes a company's PE ratio and compares it to its expected earnings growth, essentially
asking how much am I paying for each unit of growth.
Today in this video, I'm going to show you 10 high-growth companies currently screening
at a low PEG ratio, meaning they're actually undervalued even at very close to all-time
highs, including some of the biggest names in AI and technology.
Obviously, I'm not saying that these are automatically cheap or even that you should
go out and buy them.
I'm showing you why, in an expensive market, looking beyond the headline PE ratio could
help you find companies where their growth is actually justified in these high prices
even today.
Let's get into it.
My name is Nolan Govea, my students call me Professor G, and I made this channel to make
investing simplified.
Remember that all investing carries risks, so do your own research.
This is not financial advice, and I'm not a financial advisor.
Peter Lynch famously generated roughly 29% annualized returns over 13 years while managing
Fidelity's Magellan Fund.
One important part of his valuation framework was the PEG ratio, and the concept is straightforward.
PEG ratio equals the PE ratio divided by the expected earnings growth rate.
Here's why I like the PEG ratio, and especially for today, in these high-flying, quick-growing
companies way faster than they used to grow back in the 1960s or 1980s, we need something
updated that actually factors in how fast these companies can actually grow.
The old-school purely PE ratio is still something to kind of consider, but it definitely isn't
the only metric.
This one is more important.
Let's say company A trades at 20 times earnings, and it's expected to grow earnings by just
10%.
Its PEG would be 20 divided by 10, which equals 2.0.
Now compare that with a company like NVIDIA, which has recently been trading around 19
to 20 times forward earnings, while analysts are expecting extremely strong earnings growth.
NVIDIA just reported quarterly revenue growth of 106%, and management is projecting roughly
70% revenue growth for the following fiscal year.
If you assume, for illustration, 40% expected EPS growth, the PEG would be 20 divided by
40, which equals 0.50.
So both companies might look similar if you only look at the PE ratio.
Company A, 20 times earnings.
NVIDIA, about 20 times earnings.
So both have the same PE.
But the PEG tells a completely different story.
Company A was 2.0 PEG, NVIDIA was about a 0.5 PEG.
That's the power of the PEG ratio.
You're not just asking, how expensive is this company?
You're asking, how expensive is this company relative to how fast its earnings are expected
to grow?
And generally, a PEG under 1 is where I start to get very interested.
Because you're potentially paying less than $1 of valuation for every $1 of expected growth.
Now just remember, a low PEG doesn't necessarily mean, okay, it's 100% a shoo-in to just buy
that company.
You still now have to determine whether that growth is realistic, sustainable, and possibly
already priced into the stock.
This is why stock picking is so hard, but the PEG ratio is a great place to start.
So I compiled a list of 10 companies with PEG ratios under 1, and I'm going to give
you a reason why these are solid companies to look at and start your research for you.
I always hope that you're doing your own research, you're not just taking what I or anyone else
has to say.
Do your own research for your specific portfolio.
Number one is SoFi, with a PEG of about .9.
SoFi just reported record Q2 adjusted net revenue of roughly $1.2 billion, record member
and product growth, and $157 million of net income.
Management continues to expect roughly 30% annual adjusted net revenue growth in 2026.
The bull case is that the market is still valuing SoFi more like a lender than a broader
digital financial services platform.
You all know I've been invested in SoFi for a while, and I really like that company.
Now, just so you know, for this list, it's going to be short and sweet, just like that.
I'm going to give you the PEG, I'm going to give you a couple of reasons why, but again,
I want you to do the deeper dive to see if it makes sense for your portfolio.
So number two is AMD, and that one has a PEG of about .9.
AMD has secured a major 6 gigawatt GPU deployment agreement with OpenAI, including a warrant
for up to 160 million AMD shares tied to purchase and performance milestones.
AMD is also expanding its AI infrastructure.
The opportunity is enormous, but execution and competition against Nvidia remain major
factors.
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Alright, so on to number 3, which is a health company, and this is Hims and Hers Health.
This one has a PEG ratio of .8, Q2 revenue reached approximately $753 million, up 38%
year-over-year, and the company's raised its full-year 2026 revenue outlook to $3.1 billion,
up to $3.3 billion.
The stock's valuation has compressed significantly from previous highs, creating a potentially
interesting risk-versus-reward setup if the company can maintain strong growth.
Number 4 is one that you're very familiar with, and it's still cheap somehow, which
is crazy, especially when looking at the PEG ratio, but this is NVIDIA, and this one has
a PEG of .8.
NVIDIA just delivered a record $96.2 billion quarterly revenue, up 106% year-over-year,
with data center revenue reaching $89 billion.
Management is guiding to approximately $108 billion of revenue for the following quarter.
The biggest question isn't whether NVIDIA is growing, it's whether future growth can
continue to exceed the extremely high expectations already embedded in the stock price.
Number 5 is ServiceNow.
This one has a PEG at .6.
ServiceNow generated $3.88 billion of subscription revenue in Q2, up 24.5% year-over-year.
Importantly, ServiceNow AI surpassed $1 billion in annual contract value during the quarter.
The opportunity is turning enterprise AI adoption into recurring software revenue at massive
scale.
Number 6 is a great company that I've liked for a long time, and this is Broadcom.
Broadcom has a PEG of .6.
Broadcom's Q2 AI Semiconductor Revenue reached $10.8 billion, up 143% year-over-year.
Management expects AI Semiconductor Revenue to reach approximately $16 billion in Q3,
while Broadcom has projected more than $100 billion of AI Semiconductor Revenue in 2027.
Custom AI accelerators and networking remains major growth drivers.
Number 7 is Oracle.
This one has a very low PEG at .5.
Oracle ended its latest quarter with an enormous $638 billion of remaining performance obligations,
driven heavily by large AI infrastructure contracts.
Oracle's cloud infrastructure business is growing rapidly, although converting that
enormous RPO into revenue will require significant investment and execution.
Number 8 always makes me laugh because it makes me think of SuperBad, and this one is
called Applovin.
Applovin has a PEG of .5.
It generated $1.92 billion of Q2 revenue, up 53% year-over-year, while adjusted EBITDA
reached $1.61 billion, an extraordinary 84% margin.
The company continues to produce exceptional growth in cash flow, although the valuation
still reflects very high expectations.
Number 9 has been all over the news, especially if you've been an investor this year specifically
This one would be SanDisk, with a PEG of .4.
SanDisk's latest quarter showed extraordinary momentum, with revenue reaching $8.97 billion,
up 51% sequentially.
Roughly two-thirds of the sequential increase came from higher pricing, while its data center
business has become a major growth driver.
The key question is how durable today's elevated NAND pricing and AI-driven storage demand
will be.
Last but not least is one that I've talked about a lot on this channel recently and that
I'm invested pretty heavy, and honestly, if you look at the ETFs you're invested in, most
of the growth ETFs, even things like the S&P 500, Total US Stock Market, and definitely
anything that has to do with AI or memory, this one's at the top, and it's still cheap
This one's none other than Micron, with a very low PEG of .4.
Micron reported record fiscal Q3 revenue of $41.5 billion, up 346% year-over-year, with
an 84.6% gross margin.
Management guided to approximately $50 billion of revenue and an 86% gross margin for Q4.
Multi-year strategic customer agreements could also make this memory cycle more durable than
previous cycles.
Now remember this because it's very, very important.
A low PEG ratio can highlight a potential valuation disconnect, but it should never
be used by itself.
Expected growth can change quickly, especially for cyclical companies, and PEG doesn't capture
balance sheet strength, free cash flow, competitive advantages, dilution, cyclicality, or the
quality and durability of earnings.
The PEG ratio is a great starting point, not a complete investment thesis.
Now if you have been investing for a little while, you have over $100,000 invested, this
is the video to watch to get you to that next level.
If you want to hit those 7 figures, or deep into the 7 figures, you have to do something
different than what you started out with in investing.
Watch that video now, or watch this one, and remember to keep investing simplified.
