PEG ratio can help inform stock buying decisions. What it is and how to use it [Video]

Here’s our Club Mailbag email [email protected] — so you send your questions directly to Jim Cramer and his team of analysts. We can’t offer personal investing advice. We will only consider more general questions about the investment process or stocks in the portfolio or related industries.

This week’s question: You advise not to buy stocks that have a PEG of over 2, but it seems many of the stocks recommended on the show have a PEG of well over 2, such as Abbott Labs and Eaton. Is this because there are more important considerations than PEG? — Marcia from Washington