Good comments. Your chart shows that when a growth company's earnings growth rate fall, so does it's PE. This is why calling a stock cheap because its PE is down is so misleading. PEs are falling on many stocks because their earnings growth is expected or feared to be in for a slowdown, if not worse. eBay is a retail stock, and retailers are in the dumps. Until consumer spending shows signs of recovery, eBay and most retail stocks will be relatively weak, don't you think?
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Good comments. Your chart shows that when a growth company's earnings growth rate fall, so does it's PE. This is why calling a stock cheap because its PE is down is so misleading. PEs are falling on many stocks because their earnings growth is expected or feared to be in for a slowdown, if not worse. eBay is a retail stock, and retailers are in the dumps. Until consumer spending shows signs of recovery, eBay and most retail stocks will be relatively weak, don't you think?
Feb 20 11:06 am
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