Apple’s forward P/E is 22. I’ve easily seen it at P/E’s of 10 or so before it’s cheap. But stocks like AAPL/GOOGL’s turnarounds will be seen more on long-term technical charts than just fundamentals alone. They were overly-loved and therefore overly-owned and overvalued. That all has to unwind and will be easier to track that in real-time on those long-term charts.
It’s likely that, until we’re nearer to the end of wave C in the broader stock market, most stocks (including these) may not prosper. Keep in mind, we’re likely at the bottoming period for wave A, getting ready to go into the bear market bounce of wave B (which can temporarily benefit many stocks including these) but them not find “true bottoms” until that bear market rally fades and retests the old lows and very likely goes much lower.
Right now, the average person is still looking for a bottom. When they give up all hope that one will come…you’re getting nearer to a bottom. We’re not there yet. Also, the average P/E on the S&P 500 has only come down to an average P/E of 18-19. For more on all of that, see this week’s video in the Members Area.
There will be a day to be in these stocks, because they’re cash-rich companies and with good growth rates, etc. But that day is not today. Sure there are “tradable moments” in the bear market bounce as it unfolds. But not true investable moments yet.
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