Here are 20 growth stocks you can buy at 'value' prices

By Philip van Doorn

These stocks trade at or lower than half the P/E valuation of the S&P 500, while having much higher projected revenue growth rates than that of the index

A list of companies that combine low price/earnings valuations with high revenue-growth projections can provide a starting point for further research when selecting stocks for long-term investment.

A broad screen of U.S. stocks yields a list of companies trading at low valuations to expected earnings, with high projected revenue growth rates through 2028. The list of 20 stocks includes eight financial services companies, five healthcare names and four in the information technology sector.

For investors curious about individual stocks, a screen can produce a list that includes some surprises, or contrarian plays, while also highlighting possible opportunities that require further research.

If you were to screen for "cheap stocks," and base your screen on the most commonly used valuation metric, chances are your list would include a stock or two among a group that has soared this year and last year - manufacturers of memory chips and related computer hardware.

Read: 'This is not a flash in the pan': Why value stocks are beating growth by such a wide margin.

Some stocks of companies in this industry group, such as Micron (MU), tend to trade at relatively low price/earnings ratios, in part because investors are wary that this has been a cyclical business going through boom-and-bust cycles over the years. Micron's revenue of $15.54 billion for its fiscal year ending Aug. 31, 2023, was down 49% from the previous fiscal year. For the current fiscal year, the company's revenue is expected to nearly triple, to $111.44 billion. And Micron trades at a forward P/E of 9.4, based on the consensus 12-month earnings-per-share estimate among analysts polled by LSEG. This compares with a weighted forward P/E of 20.8 for the S&P 500 SPX.

Read more: Micron's stock rebounds after 'healthy' reset, and analysts see blue skies ahead

To look further ahead, we screened stocks for low forward P/E but also for high expected growth rates for the companies' revenues over the next two years.

Screening the S&P Composite 1500 for cheap stocks of rapidly growing companies

We began the screen with the S&P 1500 Composite Index XX:SP1500, which encompasses the S&P 500, the S&P MidCap 400 Index MID and the S&P Small Cap 600 Index SML.

Here is how we narrowed down the initial group of stocks:

-- Among the 1,500 companies, 1,300 are covered by at least five analysts working for brokerage or research firms polled by FactSet. We set this minimum number because the screen relied on consensus estimates.

-- Consensus revenue estimates are available through calendar 2028 for 1,196 of the remaining companies. We used calendar-year estimates for the revenue portion of the screen, for uniformity, while calculating projected growth rates.

-- We removed another 30 companies for which forward P/E ratios were not available. These are companies expected to show negative earnings per share over the next 12 months.

-- Among the 1,116 remaining companies, 224 trade at forward P/E of 10.4 - half the level of the S&P 500 - or lower.

Starting with the 224 companies that passed the screen, here are the 20 with the highest projected compound annual growth rates (CAGR) for revenue from calendar 2026 through calendar 2028:

 
Company                          Projected revenue CAGR from calendar 2026 through 2028  Forward P/E  Market Cap. ($mil)Industry 
Armour Residential REIT                                                           38.1%          5.7              $1,980Specialized REITs 
Ellington Financial                                                               33.6%          7.0              $1,536Specialized REITs 
Navient                                                                           24.4%          9.7              $1,248Consumer Lending 
Carlyle Group                                                                     21.2%          9.9             $21,304Investment Management 
Enova International                                                               21.2%         10.4              $3,885Consumer Lending 
BILL Holdings                                                                     17.3%          9.7              $5,463Software 
Northern Oil & Gas                                                                16.2%          5.1              $2,088Oil & Gas Exploration and Production 
ADMA Biologics                                                                    16.0%          9.0              $4,339Pharmaceuticals 
Super Micro Computer                                                              13.5%          9.8             $17,473Computer Hardware 
Micron Technology                                                                 13.4%          9.4            $321,232Semiconductors 
Shift4 Payments                                                                   13.0%          6.7              $5,580Business Support Services 
Harmony Biosciences Holdings                                                      12.6%          8.9              $2,160Pharmaceuticals 
Intuit                                                                            12.0%         10.2            $184,334Financial Technology 
Pinterest                                                                         11.8%          9.8             $17,205Online Services 
SLM                                                                               11.3%          6.8              $5,390Consumer Lending 
Affiliated Managers Group                                                         10.9%          9.5              $8,109Investment Management 
Halozyme Therapeutics                                                             10.8%          7.7              $7,914Pharmaceuticals 
ANI Pharmaceuticals                                                               10.6%          8.0              $1,774Pharmaceuticals 
Dana                                                                              10.4%          9.8              $2,668Auto, Truck & Motorcycle Parts 
Pacira BioSciences                                                                10.2%          7.0              $1,064Pharmaceuticals 
                                                                                                                                                  Source: LSEG 

For reference, the S&P 500's projected weighted revenue CAGR from 2026 through 2028 is 8.1%, according to LSEG. And that is with the index as a whole trading at least twice as high, on a forward P/E basis, as the stocks on this list.

For the S&P 500 information technology sector, the revenue CAGR projection is 20.6%, while the sector trades at a forward P/E of 24.7, per LSEG's data.

More data and a Micron warning

Leaving the 20 stocks in the same order, here are the consensus calendar-year sales estimates (in millions) that underlie the sales growth projections in the first table:

 
Company                          Est. 2026 revenue  Est. 2027 revenue  Est. 2028 revenue 
Armour Residential REIT                       $258               $382               $491 
Ellington Financial                           $273               $334               $487 
Navient                                       $596               $678               $922 
Carlyle Group                               $3,810             $5,096             $5,598 
Enova International                         $3,775             $4,429             $5,542 
BILL Holdings                               $1,749             $1,977             $2,408 
Northern Oil & Gas                          $1,790             $2,415             $2,416 
ADMA Biologics                                $582               $667               $783 
Super Micro Computer                       $45,576            $54,710            $58,748 
Micron Technology                         $138,012           $195,288           $177,477 
Shift4 Payments                             $5,106             $5,789             $6,521 
Harmony Biosciences Holdings                $1,010             $1,137             $1,281 
Intuit                                     $22,402            $25,006            $28,126 
Pinterest                                   $4,866             $5,477             $6,085 
SLM                                         $1,450             $1,618             $1,796 
Affiliated Managers Group                   $2,347             $2,596             $2,887 
Halozyme Therapeutics                       $1,777             $2,001             $2,183 
ANI Pharmaceuticals                         $1,116             $1,252             $1,364 
Dana Limited Volatility ETF                 $7,641             $8,620             $9,313 
Pacira BioSciences                            $766               $826               $931 
                                                                            Source: LSEG 

Micron's sales for calendar 2028 are expected to decline 9% from those in calendar 2027. This is the only company on the list expected to show a revenue decline that year. Even with 44 out of 47 analysts who cover the stock rating it a "buy," per LSEG's data, there is the expectation that Micron's growth cycle will slow relatively soon.

Any stock screen is limited to a few data points. If you see any companies of interest here, you should do your own research to form your own opinion about business strategies and the ability of the companies to compete over the long term. One way to begin your research is to click on the tickers for more information.

Read: Tomi Kilgore's detailed guide to the information available on the MarketWatch quote page

Don't miss: This stock-market strategy has cheap exposure to AI and points to an advantage for closed-end funds

-Philip van Doorn

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06-15-26 1159ET

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