The Secret to Picking Low P/E Stocks

by liaofa on 2009-04-21 11:02:15

Even without very high growth, the high inflation potential of low P/E stocks still amazes people, and the risks are much lower than those volatile growth stocks. The potential for a rise in the P/E ratio, combined with improved earnings, makes the stock price appreciation potential of low P/E stocks considerable. Investing in low P/E stocks does not yield a tiny price spread that matches the company's revenue, but rather a stock price that can increase by 50% to 100%.