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Kari wrote:

"I mean, not using any Relative Strength criteria, just sorting those 30 stocks by PEG and selecting the 4 or 5 with lowest PEG."

Worth a try, or you can add other criteria to the PEG ratio and go through the S&P 500 as well. Use a screener that lets you choose (and design) your own criteria.

But beware of using a single number, be it yield, p/e, peg, or the numerical value of all the letters in the company president's family name. A high PEG in one industry is a low PEG in another, just as some types of companies traditionally pay high yields and some tend to have low P/E's.

OTOH, I think that these one-number approaches work over time because buying just about ANY halfway decent company will pay off over time. So, if you restrict your potential purchases to the DJ30, it'll be hard not to show some good results.

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