Due to the recent recession, everyone is looking for a deal. This has actually been good news for certain companies. In the long run, at least a business cycle (3-5 years), the rate of earnings growth is important. A fast growing company will command a higher valuation than a slower growing company.
Today’s video looks at a fast growing business that is prospering in the weak economy.
Best when viewed in full youtube screen.
Just because one company trades at a lower PE ratio than another does not necessarily mean it’s cheaper. It all depends on the growth rate.
Disclosure: Author Manages Portfolios Long PCLN
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