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marotta
10-02-2006, 12:31 PM
P/E Ratio (2006-10-02)

by David John Marotta

Stock brokers and investors often look at certain fundamental information about a stock when determining if that stock is a good stock to purchase. One of those fundamental indicators is the "P/E ratio" of a stock. While we favor low P/E stocks, often called value stocks, buying a stock simply because it has a low P/E is like assuming a car is fast because it has racing stripes and a number on the side.

Read the complete column at http://www.emarotta.com/article.php?ID=198