A good screener for picking undervalued stocks is the forward price-earnings ratio. Of course, when it comes to growth stocks, it makes sense to look at the price-earnings-to-growth ratio (PEG ratio). I am, however, focused on blue-chip names in this column trading at a valuation gap and could witness a strong reversal.The broad market sentiment seems positive, with the S&P 500 index trending higher by 6.8% for year-to-date. The index currently trades at a price-earnings ratio of 27.5. I am positive about t ...