Stock Market Sell-Off: 3 Growth Stocks That Are Absurdly Cheap
The recent stock market sell-off left nearly all stocks down from their all-time highs. However, some stocks were beaten down before the broader sell-off began, so they look unbelievably cheap now.This opens up a massive buying opportunity for long-term investors, as it's not often that you can scoop up shares this cheap. Three stocks that look like absolute bargains right now are Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Taiwan Semiconductor (NYSE: TSM), and Adobe (NASDAQ: ADBE). All three of these companies are well off their highs, yet they don't have a good reason to be trading this cheaply.For my baseline of what I describe as "cheap," I'm using each stock's forward price-to-earnings (P/E) ratio. This metric uses analysts' projections to determine the denominator. Those projections aren't perfect, but I think it's superior to the trailing P/E ratio because it looks at where the stock is going, rather than where it was. The market is a forward-looking entity, so the valuation metrics that we choose should follow that approach.Continue reading
The recent stock market sell-off left nearly all stocks down from their all-time highs. However, some stocks were beaten down before the broader sell-off began, so they look unbelievably cheap now.
This opens up a massive buying opportunity for long-term investors, as it's not often that you can scoop up shares this cheap. Three stocks that look like absolute bargains right now are Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Taiwan Semiconductor (NYSE: TSM), and Adobe (NASDAQ: ADBE). All three of these companies are well off their highs, yet they don't have a good reason to be trading this cheaply.
For my baseline of what I describe as "cheap," I'm using each stock's forward price-to-earnings (P/E) ratio. This metric uses analysts' projections to determine the denominator. Those projections aren't perfect, but I think it's superior to the trailing P/E ratio because it looks at where the stock is going, rather than where it was. The market is a forward-looking entity, so the valuation metrics that we choose should follow that approach.
