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    Newcomer1's Avatar
    Newcomer1 Posts: 1, Reputation: 1
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    #1

    Mar 17, 2011, 04:00 PM
    Why would a stock with a high P/E ratio still be rated a storng buy?
    The example I am thinking of is Helix Energy Solutions (HLX). Thanks.
    smoothy's Avatar
    smoothy Posts: 25,492, Reputation: 2853
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    #2

    Mar 17, 2011, 04:12 PM

    How about talking to a Financial Advisor. Only a fool would ask advice what stock to buy from someone they don't know... and has no legal fiduciary obligation to them.

    There are a lot of nuances as well as market trends to consider. Not just Price to earnings ratio. And an ear to the market to anticipare what might be coming. It's a full time job doing that... otherwise its like throwing craps in Vegas.
    takemyview's Avatar
    takemyview Posts: 2, Reputation: 1
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    #3

    May 7, 2011, 05:27 AM
    P/E ratio is not the only criteria in deciding future stock market price target for specific share. As lot of things are playing in for current prices of low P/E shares. If I have to list few then say conversion of debentures partly into equity shares is due in some time, some sectors are not enjoying higher P/E as tough competition is there with in the sector and there are many more.
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