Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Wednesday, November 26, 2008

Article Excerpt

One of the brightest signs in today’s market is that many great stocks now trade below 10 times earnings. That’s especially true of high-quality technology issues, since they spend so heavily on research, which gets written off against earnings like a routine expense. Low p/e ratios are also particularly appealing at times when interest rates are low, as they are now. Of course, earnings could drop next year and push up those p/e ratios. Stock prices could move lower, for a variety of reasons. But that’s always a risk. To profit best, you need to invest mainly in well-established companies that are likely to recover from the economic downturn and go on to produce still higher earnings in the future. CAMPBELL SOUP CO. $31.88, New York symbol CPB, earned $260 million in its first fiscal quarter ended November 2, 2008, down 3.0% from $268 million a year earlier. However, earnings per share rose 2.9%, to $0.71 from $0.69, on fewer shares…