Low PE High EPS Growth US Stocks — Cheapest Growth on NYSE & NASDAQ

US stocks with P/E below 15 (cheap on earnings) AND EPS growth above 15% (strong earnings momentum). The combination implies PEG at or below 1.0 — you're paying a P/E equal to or lower than the earnings growth rate. By Peter Lynch's GARP framework, PEG below 1.0 is undervalued: you're paying less in P/E terms than the growth rate justifies.

At the threshold values (P/E = 15, EPS growth = 15%), PEG = 15/15 = 1.0 — exactly Lynch's fair value. Most stocks on the screen have PEG below 1.0 because either the P/E is lower than 15, the growth is higher than 15%, or both. A stock at P/E 10 with 25% EPS growth has PEG of 0.4 — deeply undervalued by GARP standards. The PEG ratio of each stock can be calculated directly from the P/E and EPS growth columns.

The S&P 500 has traded at an average P/E of approximately 16-18 over the past century. P/E below 15 places a stock below the long-run market average — you're paying a below-average multiple for a company growing earnings above the market average. The combination specifically contradicts the normal relationship between quality/growth and P/E — quality growth stocks usually command premiums, not discounts.

Several scenarios: sector-wide pessimism dragging down individual quality stocks, small/mid-cap under-coverage creating information inefficiency, recent bad news that impacted one quarter without affecting the growth trend, investor focus on near-term headwinds while missing medium-term earnings power, and cyclical business misclassification — a company growing through a full cycle viewed as purely cyclical by the market.

Three checks: (1) Verify EPS growth over 3 years, not just the latest year — a recovery from a depressed base year can create misleading high percentage growth. (2) Check operating cash flow — genuine earnings growth shows up in OCF, not just accounting profit. (3) Read analyst consensus — if the majority of analysts are bearish despite 15%+ EPS growth and P/E below 15, understand their specific concern before buying.

This screen uses EPS growth (earnings per share). Revenue growth confirms the EPS expansion is commercially backed rather than margin-driven or financial engineering. The best situations on this screen have both EPS growth above 15% AND revenue growth above 10% — confirming the earnings growth comes from real business expansion. Companies with EPS growth via margin expansion only (revenue flat, costs cut) are less durable than those with both growing.

Low PEG explicitly calculates the PEG ratio and requires PEG < 1.0. This screen sets separate absolute thresholds for P/E (below 15) and EPS growth (above 15%). At the boundary values they're equivalent (both imply PEG = 1.0). However, Low PEG captures a stock at P/E 25 with 30% growth (PEG 0.83 — qualifies) which this screen excludes (P/E above 15). Low PE High EPS Growth is more conservative on valuation; Low PEG is more flexible on the P/E level.

Financials (banks and insurance — structurally low P/E multiples with periodic EPS acceleration), industrials (cyclical recovery phase with low multiples), energy (commodity-price-driven EPS growth in recovery cycles), healthcare (specialty pharma below typical sector P/E), and consumer discretionary (value retailers with accelerating earnings). Technology rarely appears because high-growth tech almost always commands P/E well above 15.

Larger market caps (above $5B) on this screen are rarer but more compelling — large-cap companies with P/E below 15 and 15%+ EPS growth are genuinely cheap quality situations that often signal institutional under-attention. Mid-caps ($1-5B) are the most populated and potentially most actionable tier — large enough for institutional quality but small enough for under-coverage to create pricing inefficiency.

The implied PEG ratio: calculate P/E divided by EPS growth % for each stock. Rank by this ratio ascending. The stocks with the lowest PEG ratios (furthest below 1.0) are the most deeply undervalued by GARP standards. A stock at P/E 8 with 25% EPS growth (PEG 0.32) is three times more undervalued on a growth-adjusted basis than one at P/E 14 with 15% growth (PEG 0.93). The ranking by implied PEG is the most actionable output from this screen.