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Thursday, June 14, 2012
7 Discounted Financial Stocks That Analysts Love
When analysts rate a company's stock as a 'Strong Buy', it's a sign that there are a variety of things that the company is doing right. It also means there is confidence that the stock is going to increase in value. Today we focus on stocks sporting high analyst ratings, but that also look undervalued from a price-multiple perspective. We came up with a rather diverse list, but we think you'll find it interesting.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
... Read the rest at SeekingAlpha.com
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