Tag: secondary
Articles tagged as Secondary
Don't Buy Stocks based on P/E Ratio alone
Posted on July 18, 2022 by Donald Travers
I use the P/E ratio as a secondary indicator for buying and selling stocks but I do not use the ratio in the same a manner as many value investors teach.I'll explain the difference in my methodology for using the P/E ratio to your advantage.Many value investors will pass on a growth stock which has a P/E ratio greater than a predetermined amount.By way of instance, they may discard all stocks with a ratio of 15 or greater, regardless of what industry group they come from...