Wednesday, August 8, 2007

Bargain Hunting In Financials (and Energy)

If you were looking for the right time to buy some of your favorite financial stocks, the day may soon be approaching. A cloud of worry hangs over the sector due to the subprime mortgage fallout and many of the top names have been crushed. When was the last time you could have picked up Morgan Stanley at 7.56 times earnings or Lehman Brothers at 7.67 times earnings? In fact only two of the top 25 S&P 500 stocks with the lowest P/E ratios are not in the financial or energy sectors. A full 2/3rds of this list are financial companies, and many of them are officially on sale.

By the way Valero Energy is the largest refiner in the US and is a screaming buy at 7.88 times earnings. It seems some people have caught on to Valero's deep discount and started buying a few days ago on the dip . .

Posted by The La Jolla Guy at 1:50 PM

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1 comment:

Anonymous said...

Another rookie stock blogger who thinks buying stock because of a low P/E will make you money. Have you morons not learned anything from BSC and GS recently. Get a clue nitwit.

August 14, 2007 at 11:45 PM

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