4 Discounted Consumer Stocks With Strong Earnings Trends

Are you Interested in gaining exposure to consumer companies that know how to earn serious money? Are you even more interested when those companies look undervalued, meaning that now could be the time to buy? If so, here are some ideas to get you started on your search.The Price/Earnings ratio is one of the most commonly used price-multiple metrics. Often, EPS from the last four quarters is used to derive this number. A firm that has a high P/E ratio generally indicates that investors have high expectations of the firm relative to future earnings growth. By the opposite token, investors generally have lower expectations of a firm with a low P/E ratio. A firm that holds a P/E below 10 could be viewed as having "value investment" potential. One thing to remember is that EPS is an accounting measure that could be potentially manipulated. Thus the P/E is only
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