- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Winter Olympics
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Do P/E ratios still matter?
Posted on 1/30/26 at 7:07 pm
Posted on 1/30/26 at 7:07 pm
Seems like the spread on blue chip stocks has widened over the years
10
Posted on 1/30/26 at 7:10 pm to Rankest
Great question, seems like some stocks get major exceptions to the rule but others are judged by it. I have no idea.
Posted on 1/30/26 at 7:16 pm to Rankest
The answer is sometimes. It applies for some value stocks. It applies less for growth stocks. It doesn’t really apply for large periods of time on speculative stocks
Posted on 1/30/26 at 7:42 pm to Rankest
During market corrections generally it matters. But these days they are so infrequent you are leaving money on the table
Posted on 1/30/26 at 8:08 pm to Rankest
A company eventually needs earnings to be a viable business.
What you are willing to pay for earnings is up to you. It is probably based on what you think the companies growth prospects are and what your investment alternatives are.
The low interest rate environment props up stock prices some since to can only get 4.9% for a 30 year treasury bond.
I prefer companies which have a long history of rising dividend payments. Earnings can be manipulated by accounting tricks, but a company has to write the check for the dividend.
What you are willing to pay for earnings is up to you. It is probably based on what you think the companies growth prospects are and what your investment alternatives are.
The low interest rate environment props up stock prices some since to can only get 4.9% for a 30 year treasury bond.
I prefer companies which have a long history of rising dividend payments. Earnings can be manipulated by accounting tricks, but a company has to write the check for the dividend.
Posted on 1/30/26 at 8:14 pm to Rankest
Not as long as the overall market sentiment is positive and the stock in question is in a “sexy” field.
There’s so much dumb money sloshing around right now.
There’s so much dumb money sloshing around right now.
Posted on 1/30/26 at 8:40 pm to Rankest
What’s your definition of blue chip? Mine would be dividend stocks, and I don’t think those are narrowing now that you can buy covered call ETFs that are more diversified and consistently return more than 3-5%.
Case in point, just a couple years ago you’d routinely see posts with people discussing stocks like O. If you wanted to push the limits you’d hear about stuff like CBRL or DOW.
Today, the only old school blue chip stocks you hear anyone admit about are MO, and maybe GE, IBM, or IRM.
Case in point, just a couple years ago you’d routinely see posts with people discussing stocks like O. If you wanted to push the limits you’d hear about stuff like CBRL or DOW.
Today, the only old school blue chip stocks you hear anyone admit about are MO, and maybe GE, IBM, or IRM.
Posted on 1/30/26 at 9:30 pm to Rankest
It matters as much as any fundamentals problem is we are in a generational asset bubble so answer is, no.
Posted on 1/31/26 at 9:39 am to Rankest
Short term? Not really
Long term? Absolutely
Long term? Absolutely
Posted on 2/2/26 at 10:22 am to Rankest
It’s one factor. PEG ratio is good also.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News