Nvidia (NVDA)
Up 74% in the past year Nvidia is still proving it’s deserving of its top spot as the most valuable company in the world with a PEG ratio of just 0.7. With a TTM EPS of $4.90 and forecasts showing $7.66 for Jan 2027, it’s likely to see a 59% increase to its earnings in just 9 months.
This sort of earnings increase at a market cap of $4.3T is incredibly impressive, and combined with a relatively reasonable 36 PE is how it’s able to get such a low PEG. On top of these projections, they’ve also beat their latest 4 earnings calls and are still buying back shares which is typically an indicator that management views the shares as being undervalued.
The average analyst rating is a Strong Buy with a +54% one year forecast, and we have it as a medium risk high reward stock. Our current rating for Nvidia is a Buy with a +24% one year forecast.
SoFi Technologies (SOFI)
SOFI is down over 42% year to date and is still highly rated among analysts with an average one year price forecast of +47% and a Strong Buy rating. But aside from these bullish analyst ratings, we think investors should consider SOFI because of it’s incredibly low PEG ratio of just 0.5 – meaning it has a low valuation relative to it’s earnings forecasts and is therefore undervalued.
They’ve beat all 4 of their last earnings calls and sport a 42 price to earnings with a forecasted EPS growth of almost 80%, giving them an incredible PEG ratio of just 0.5.
And with industry growth forecasts of 7.2% to 7.6% over the next few years, SOFI is already well positioned to take advantage of this and has already been seeing record levels of membership growth lately. Such a low PEG in an industry with decent growth is a very good sign and as such we have rated SOFI a Strong Buy with a 23% one year price projection. We rate SOFI Technologies stock as medium risk, high reward.
Microsoft (MSFT)
Down around 27% in the past 6 months, Microsoft stock is a buy because of its attractive valuation and impressive earnings estimates which make up it’s 1.3 PEG ratio.
The majority of it’s revenue comes from 6 sources (Azure, Office, Windows, Gaming, LinkedIn, and Bing) which means it offers reliable cash flowing business alongside upcoming tech like AI. MSFT stock has a great valuation at a 23 PE, particularly given its high earnings growth forecasts.
They’ve beat all 4 of their last earnings calls and analysts have rated Microsoft a Strong Buy with an average one year forecast of +32%. We have put them as low risk, medium reward and have rated it a Strong Buy with a +17% one year forecast.
