I remember in 2019 when markets pundits started using p/s to value stocks because they couldn’t justify stocks going up with no earnings.
Obviously they were reaching as we look at the current market environment and how p/e came back in favor very quickly to justify why one stock goes up and another goes down (TV market pundits).
I don’t value a stock solely based on p/e or p/s but I like to use them for analysis, etc.
Any market sages or experienced participants been through these cycles? Can you give some context or thoughts on it.
Markets aside. I’m speaking to the disparity
Example
Stock A: fwd p/e 36 p/s 36
Stock B: fwd p/e 52 p/s 5
Based on these numbers what would you conclude about Stock A and Stock B?
Obviously they were reaching as we look at the current market environment and how p/e came back in favor very quickly to justify why one stock goes up and another goes down (TV market pundits).
I don’t value a stock solely based on p/e or p/s but I like to use them for analysis, etc.
Any market sages or experienced participants been through these cycles? Can you give some context or thoughts on it.
Markets aside. I’m speaking to the disparity
Example
Stock A: fwd p/e 36 p/s 36
Stock B: fwd p/e 52 p/s 5
Based on these numbers what would you conclude about Stock A and Stock B?