Just caught something interesting while screening for undervalued stocks with solid growth potential. You know how most people are chasing those high-flying growth names right now? Well, there's actually a smarter way to find companies that have both the growth AND the reasonable valuation.

The PEG ratio is this old-school metric that Benjamin Graham—Warren Buffett's mentor—used to swear by. Basically, it's your P/E ratio divided by the growth rate. When you find stocks trading with a low peg ratio under 1.0, you're looking at companies that the market might be sleeping on. I ran a quick screen and found 17 stocks that fit the criteria. Here are three that caught my eye.

First up is Skillsoft (SKIL). It's a small cap AI play with a market cap around $133 million—one of the rare AI companies still trading cheap. Yeah, the stock is down 36% this year, but here's the thing: earnings are expected to drop 19.6% in fiscal 2026, then absolutely jump 48% in 2027. The forward P/E is sitting at just 4.4, which is basically giving stock away. It's got that low peg ratio setup too. If the turnaround thesis plays out, this could be interesting.

Then there's Pinterest (PINS). This one's been a bit of a sleeper despite solid fundamentals. Monthly active users jumped from 522 million to 578 million year-over-year, and the AI integration is actually driving real revenue growth. The stock is up 9.9% YTD though, so it's lagging the broader market. But here's why it matters: earnings are forecast to jump 33% in 2025 and another 22% in 2026. With a PEG ratio of just 0.5 and a P/E of 18.4, you're getting growth at a reasonable price. This is the kind of low peg ratio stock that actually makes sense for value investors right now.

Last one is Micron (MU). This is the AI boom story everyone knows but maybe hasn't fully priced in yet. Earnings exploded 537% in fiscal 2025 thanks to data center demand, and revenue hit a record $37.4 billion. The craziest part? Earnings are expected to jump another 100% in fiscal 2026. Even with the stock up 128% this year, it's trading at a forward P/E of 11.9—still in value territory. The PEG ratio is 0.4, which is incredibly cheap for a company growing like this.

What I'm noticing is that if you're disciplined about screening for low peg ratio stocks, you can actually find legitimate growth stories trading at value prices. It's not complicated, but it requires looking past the noise. Worth keeping these three on your radar if you're trying to balance growth and valuation in this market.