NotChuck

Can Investors Still Rely on a Stock's P/E Ratio?

Aren't the average margins of info tech and telecom grossly understated using the 98-06 time frame? I remember a ton of companies reporting losses quarter after quarter that don't even exist today. Are those companies inclusion skewing the numbers negatively? I think the relative outperformance of info tech for 06 is overstated and there could be room for improvement rather than compression of margins in that sector.