Below are the three companies in the Leisure Products industry with the lowest price to earnings to growth (PEG) ratios. PEG is valuable in assessing the tradeoff between the price of a stock and expected growth. Generally, the lower the PEG, the better.
Smith & Wesson (NASDAQ:SWHC) is lowest with a PEG ratio of 0.55. Smith & Wesson Holding Corporation produces handguns, law enforcement products, and firearm safety and security products. The Company also manufactures handcuffs, and markets Smith & Wesson branded bicycles, apparel, and other products. Smith & Wesson's products are sold to law enforcement personnel, military personnel, target shooters, and collectors throughout the world.
Potential upside of 33.9% exists for Smith & Wesson, based on a current level of $9.21 and analysts' average consensus price target of $12.33. Smith & Wesson shares should encounter resistance at the 200-day moving average (MA) of $9.32 and support at the 50-day MA of $8.89.
Leapfrog Enterprises (NYSE:LF) is next with a PEG ratio of 0.75.
Finishing up the bottom three is Arctic Cat (NASDAQ:ACAT), with a PEG ratio of 0.95.