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3 High-Growth Value Stocks to Buy

If you peg PEG to value, you'll see these stocks are bargains

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The Goodyear Tire & Rubber Co.

goodyearlogoPEG Ratio (Five-Year Expected): 0.19
Project Five-Year Earnings Growth: 41%

Last but not least, we have The Goodyear Tire & Rubber Co. (GT). Despite GT’s eye-popping 62% 12-month gain, the company still remains far off its mid-90s peak … and certainly looks like a value stock when you factor in its growth prospects.

Sure, sales fell between 2011 and 2012 and are slated to slide slightly again this year. But GT still is supposed to grow earnings by an impressive 27% during 2013, and is slated to tack on another double-digit increase the year after.

That shouldn’t be a surprise considering two factors: the recovering automotive market and the company’s global footprint.

Those two tailwinds have been helping drive Goodyear to big-time earnings beats in the three past three quarters, blowing away estimates by 58%, 50% and 95%. Meanwhile, in the most recent quarter, GT reported record operating profit in Asia and doubled its operating profit in Europe despite the region’s economic struggles, plus sales were especially strong in Latin America.

Meanwhile, Goodyear’s future growth should average 41% per year over the next half-decade. That should definitely keep GT burning rubber.

As of this writing, Alyssa Oursler did not hold a position in any of the aforementioned securities. Follow her on Twitter: @alyssaoursler.

Article printed from InvestorPlace Media,

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