This ratio will gain importance in the coming months. 5 stocks which fit with bill with an upside potential of up to 42%

There is always the chance of going wrong in the market. So, caution and a long-term perspective should be your mantras. But there are times like now (an economic slowdown coupled with global issues) when thinking before deciding is a must. This is also when value becomes important. Now, most investors ascertain value using the price-to-earning or PE ratio. But, as the market adjusts to the Q3 numbers and prices in Q4, relying on this ratio could lead to more wrong decisions than right. When looking at a long-term investment, it is better to use the lesser-known PEG ratio. It helps you avoid stocks which might appear cheap but actually are not value buys. Again, in sectors that are cyclical in nature, looking at the PE matrix alone may lead to wrong decisions.