How do you evaluate a large-cap stock?
May. 6th, 2008 07:18 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
beth_leonardThe Motley Fool Investment Guide had several great chapters on picking and evaluating small-cap growth stocks -- when to buy, when to sell (P/E/Growth < 0.6 means buy, = 1.0 means sell, > 1.4 means short). Does anyone have any solid advice for what numbers are good for large-cap stocks? Specifically, we're considering investing in Apple, but don't know at what price is a good price to buy it.
It's a solid, well-managed company, but I don't know if it's overpriced or not. We first talked about Apple several years ago, and now wish we'd bought then. The question is, should we buy now or not?
I'm halfway though Lynch's book, and there's a few other investment books on my stack. Right now we've been doing more selling and I feel like it's important to get some of this money back into the market and I specifically want to look at Apple to fill the "large cap tech sector" portion of our portfolio. Their P/E is currently 38, and P/E/G is 1.5, but I don't know if that's bad for large cap stocks of this type.
--Beth
It's a solid, well-managed company, but I don't know if it's overpriced or not. We first talked about Apple several years ago, and now wish we'd bought then. The question is, should we buy now or not?
I'm halfway though Lynch's book, and there's a few other investment books on my stack. Right now we've been doing more selling and I feel like it's important to get some of this money back into the market and I specifically want to look at Apple to fill the "large cap tech sector" portion of our portfolio. Their P/E is currently 38, and P/E/G is 1.5, but I don't know if that's bad for large cap stocks of this type.
--Beth
