Hi there -
Picking your own stocks is part of the fun of investing. It also presents some of the greatest challenges. You can use stock screeners (and MarketBeat has plenty of those to help you), but sometimes you want to keep it simple.
In this special presentation, we’re helping you do just that. In this case, we’re looking at seven stocks to buy based on their price-to-earnings (P/E) ratio. A stock’s P/E ratio tells an investor how much they are paying per share for every dollar of a company’s profit.
It’s not a perfect measurement but it’s one data point that investors can use to quickly identify stocks that are undervalued.
When a stock is undervalued, it will trade at a P/E ratio that’s below its sector average and/or below that of a benchmark index like the S&P 500. Buying these stocks gives you an opportunity for market-beating gains.
The best part about this strategy is it works in both bull and bear markets. The average P/E ratio may go up or down, but the blueprint is the same.
Of course, a company’s P/E ratio does have its flaws. It is only looking at a company’s earnings at a moment in time. You’ll still need to perform your due diligence to ensure that there isn’t a reason why investors are discounting the stock.
That’s what we’re doing in this presentation. We’re giving you seven stock picks that have undervalued P/E ratios (at the time of this writing) and a strong fundamental case that suggests these stocks can move higher. Many even pay a nice dividend while you wait on that growth.
View the 7 Cheap Large-Cap Stocks to Buy Before They Go Back Up
Rebecca McKeever
DividendStocks.com
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