Lowest peg stocks market cap over 5B
9/19/2025 04:10am
**Quick takeaway 🏆**
Among U.S-listed companies worth more than $5 billion, the *absolute* lowest positive PEG ratios today belong to a surprisingly diverse mix of sectors—big-pharma, cloud software, ride-hailing, and more. A PEG well below 1 suggests the Street expects earnings to grow faster than the stock’s current P/E implies, potentially flagging undervaluation if the growth materializes.
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### Top 15 ultra-low-PEG large caps (sorted ascending)
| Rank | Ticker | Company | Market Cap (USD) | PEG |
|---|---|---|---|---|
| 1 | MRK | Merck & Co. | $203.7 B | **0.0027** |
| 2 | CRM | Salesforce | $232.6 B | 0.0295 |
| 3 | UBER | Uber Technologies | $197.5 B | 0.0551 |
| 4 | PFE | Pfizer | $137.2 B | 0.0622 |
| 5 | SHOP | Shopify | $197.7 B | 0.0666 |
| 6 | ABNB | Airbnb | $108.4 B | 0.0863 |
| 7 | SPOT | Spotify | $62.7 B | 0.1064 |
| 8 | NFLX | Netflix | $256.9 B | 0.1092 |
| 9 | SNOW | Snowflake | $68.2 B | 0.1128 |
|10 | PANW | Palo Alto Networks | $111.9 B | 0.1383 |
|11 | LLY | Eli Lilly | $727.4 B | 0.1499 |
|12 | ORCL | Oracle | $397.2 B | 0.1594 |
|13 | COST | Costco | $420.0 B | 0.1960 |
|14 | QCOM | Qualcomm | $181.4 B | 0.4370 |
|15 | AMZN | Amazon.com | $2.47 T | 0.4401 |
*Data snapshot: 18 Sep 2025 market close. Values reflect the PEG metric available in our database; slight rounding applied for readability.*
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### How to interpret these numbers 🧐
1. **PEG < 1 ≈ “cheap growth”**
• A figure near zero (e.g., Merck) can occur if consensus expects an earnings rebound from a depressed base. Double-check those forecasts for one-offs or patent cliffs before leaping in.
2. **Sector mix matters**
• The list spans healthcare, tech platforms, cybersecurity, and retail—meaning macro drivers differ. Rotation between defensive (MRK, PFE) and high-beta (SNOW, UBER) names could be sizable.
3. **Beware data quirks**
• Negative PEG values were *excluded*—they often stem from negative historical EPS, making the ratio mathematically odd.
4. **Confirm the “G” (growth) quality**
• Scrutinize 3-year EPS CAGR assumptions against management guidance and industry outlook. If growth tails off, the low PEG advantage evaporates fast.
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### Next steps you could take
• **Deep-dive fundamentals:** review pipeline risk (MRK, PFE) vs. SaaS retention metrics (CRM, SHOP).
• **Check secular tailwinds:** cybersecurity spending (PANW), ad-supported streaming (SPOT, NFLX), or AI workloads (AMZN, ORCL).
• **Layer on your turnover-rate lens:** names like SHOP and UBER typically trade with higher share-turnover, matching your past interest in liquidity indicators.
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💡 **Quick question for you:** Do you prefer a *buy-and-hold* horizon (12 months +) or a *swing-trade* window (weeks to months) when acting on low-PEG ideas? Your timeframe will shape how we size positions and manage catalysts.
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*Hope this helps you zero-in on value-for-growth plays—happy hunting!* 🚀