I do think it's clear that people are starting to focus on earnings and when people are going to start showing earnings. Although Yahoo and AOL are profitable, they still have astronomical priceearnings ratios. It's going to be a while before earnings catch up to valuations.
Quotes about priceearnings (7 Quotes)
I think companies that are selling at the lower PEs, obviously, carrying some question marks in investors' minds, are the ones that you vote for here. So, Wachovia Bank, for example, looks interesting to us, ... But, generally, I think the lower priceearnings multiple financials are where you want to look right now. The quality merchandise has been bid up. And I think this spread right now says move from the quality financial down scale a little bit for the lower-priced ones.
Financials and consumer non-cyclical stocks also interest Johnson. You look at a company like, say, Washington Mutual, in my judgment a great company, and it's a value play. Remember, investors in this market are looking for low priceearnings ratios and some dividend yield, ... Same thing consumer non-cyclical companies like Pepsi and Safeway I think are good investments in this environment.
It seems to be the biggest concern is inflation, and the impact on (priceearnings) multiples and dividend yields. Unfortunately, there aren't enough inflation beneficiaries in the stock market.
Over the last six years, we have experienced the largest drop in priceearnings ratios in the history of the U.S. stock market, going back to 1871. 2006 has the potential to be a great year for stock investors.
Our price objective is based on a 40 times PE (priceearnings) applied to our new 2005 earnings per share estimate of 1.35.
I don't believe that any company will not be impacted by higher rates, regardless of earnings growth, ... but there's more downside for those companies with lofty priceearnings multiples.