This yields a PEG of 5. That means a PEG of 2. Direct Focus 52-week stock performance Among smaller companies, you can often find overlooked opportunities. Because they are smaller, many have fewer shares outstanding that can somewhat limit institutional ownership, which often boosts prices of large caps. The focus over the last few years was almost entirely on bigger companies.
Smaller issues lagged so here is where reasonable valuations can be found.
That gives you an interesting PEG of 0.6. The PEG comes in at 1.1. Small and mid-cap players can grow by acquisition in slowing markets as competitors struggle. Those with reserves can pick up market share as competitors cut expenses, such as advertising and employees. Once again, the strong players can also hire great employees from their weaker competitors.