High Priced Investment Ideas

There are six companies in the S&P 500 currently trading at over $100 a share. Five out of those six are companies which have sales growth expectations priced-in to their current stock price that are lower than their historical five year median sales growth.

Although Autozone (AZO), CME Group (CME), Google (GOOG), Intuitive Surgical (ISRG) and Washington Post (WPO) are trading among the highest priced per share in the index, their expectations are reasonable enough to meet those sales numbers and add shareholder value. Regardless of whether the stock is trading at $10 or $100 it is not the current price that is important but the expectations that are embedded in that price.

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The sixth company, Mastercard (MA), only has 3 years of historical sales growth numbers so the median of those 3 years was used and was the only company with higher expectations than what has been delivered.

Disclosure: None

Comments

[User 278265:]

What a stupid article. Most stocks would be priced over $100 a share if they never split their stock. Stock splits are meaningless which is exactly good companies don't do it.

2008 Dec 26 12:21 PM

[lisagbbon:]

Maybe you should reread the article, the author does not mention anything about stock splits.

Just an FYI, WalMart’s stock has split nine times.




On Dec 26 12:21 PM User 278265 wrote:

> What a stupid article. Most stocks would be priced over $100 a share
> if they never split their stock. Stock splits are meaningless which
> is exactly good companies don't do it.

2008 Dec 26 04:08 PM

[User 278265:]

This article has EVERYTHING to do with stock splits. Tell me what Walmart's stock price would be if it never ever split.

2008 Dec 26 04:49 PM