Summary
As earnings season associated with the recently completed June quarter heats up, the stock market, as measured by the S&P 500, has rebounded sharply since its early March lows. Even so, the market is down 25 percent compared to year-ago levels.
Looking at the rebound in the last few months and the position versus a year ago, more than a few people are likely beginning to wonder - is it time to get back in the market? It's a great question and while I've talked about ways to diversify and play certain strategies via exchange-traded funds (ETFs) and other vehicles, one of the more basic sets of tools is looking at an individual stock to ascertain whether it's a good company and a good investment. By good investment, I mean: is there sufficient upside in the share price to offset potential risks that could drive the stock lower?See the full content of this document
Extract
P/E Ratios Put Stocks in Context
There are many companies that are good, solid companies that potential investors may like but their valuations may suggest their stocks are fully valued.
"Valuation"? Yep, "valuation." It's not some secret code or arcane methodology but rather a framework used to dete...See the full content of this document
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