This is true but then there are giant corporations earning giant profits trading at a PE < 10.
It's only sexy stocks that people get excited by that go to the moon on a paper kite.
For example:
- Comcast (does the public hate them? yes. does the public send them ~$35B in revenue every damn quarter? also yes): PE 8.7 (https://valustox.com/CMCSA)
- JP Morgan, 5th largest bank in the world, biggest bank in the USA. Is banking risky? Yes. Is JP Morgan going to evaporate? Hell no. PE: 11.7.
- General Motors. Setting the world ablaze? No. Going anywhere in the next 20 years? Probably not. Look at their revenue trend. (https://valustox.com/GM) PE: 7.4.
- United Airlines. Yes, they break guitars. Yes, airlines have been a risky bet. But their PE ratio is 8.1. (https://valustox.com/UAL) When you buy cheap, risk is low.
If you see a company's products everywhere but you never hear about their stock, your bargain-stock spidey senses should kick in. When it's the inverse, I stay far away.
It's only sexy stocks that people get excited by that go to the moon on a paper kite.
For example:
- Comcast (does the public hate them? yes. does the public send them ~$35B in revenue every damn quarter? also yes): PE 8.7 (https://valustox.com/CMCSA)
- JP Morgan, 5th largest bank in the world, biggest bank in the USA. Is banking risky? Yes. Is JP Morgan going to evaporate? Hell no. PE: 11.7.
- General Motors. Setting the world ablaze? No. Going anywhere in the next 20 years? Probably not. Look at their revenue trend. (https://valustox.com/GM) PE: 7.4.
- United Airlines. Yes, they break guitars. Yes, airlines have been a risky bet. But their PE ratio is 8.1. (https://valustox.com/UAL) When you buy cheap, risk is low.
If you see a company's products everywhere but you never hear about their stock, your bargain-stock spidey senses should kick in. When it's the inverse, I stay far away.