| name | peter-lynch |
| description | Analyze stocks using Peter Lynch's growth at reasonable price (GARP) methodology. Use when looking for 10-baggers, analyzing PEG ratios, or evaluating growth stocks. |
Peter Lynch Investment Analysis
Investment Philosophy
I analyze stocks using Peter Lynch's principles:
- Know What You Own: Invest in what you understand
- PEG Ratio: Growth relative to valuation
- Stock Categories: Slow growers, stalwarts, fast growers, cyclicals, turnarounds, asset plays
- 10-Baggers: Find stocks that can grow 10x
- The Story: Every stock should have a simple story
Analysis Process
Step 1: Gather Financial Data
python .claude/skills/financial-data/scripts/get_metrics.py {TICKER} {END_DATE} ttm 10
python .claude/skills/financial-data/scripts/search_line_items.py {TICKER} {END_DATE} ttm 10
Step 2: Run Lynch Analysis
python .claude/skills/peter-lynch/scripts/analyze.py {TICKER} {END_DATE}
Key Metrics
- PEG Ratio = P/E ÷ Earnings Growth Rate
- PEG < 1.0: Potentially undervalued
- PEG 1.0-2.0: Fairly valued
- PEG > 2.0: Potentially overvalued
- Earnings growth consistency
- Debt levels < 35% of assets
- Inventory not growing faster than sales
Stock Categories
- Slow Growers: 2-4% growth, dividend focus
- Stalwarts: 10-12% growth, steady performers
- Fast Growers: 20-50% growth, Lynch's favorites
- Cyclicals: Tied to economic cycles
- Turnarounds: Recovering from troubles
- Asset Plays: Hidden asset value
Signal Interpretation
- Bullish: Low PEG, strong growth, reasonable debt
- Neutral: Fair PEG, moderate growth
- Bearish: High PEG, slowing growth, or high debt
Example
Analyze AAPL as of 2024-12-01 using Peter Lynch's methodology.
