A lot of people, including myself, have said numerous times that the market was expensive, but now, I see almost nothing that's worth buying. What's worrying me is that I see a lot of people talking about buying stocks that are selling for 40-50 times their earnings. It seems more and more normal to pay that kind of price.
Apple for 26 times earnings (21 times next year's earnings) with an estimated growth of 9% per year? What the fuck? It's not a normal price.
But sometimes, impressions are not completely true. In these times, you should screen the market.
That's what I just did, via Value Line. And without any particular deep analysis, here's a list of 10 stocks that are highly predictable, that have grown their EPS by 12% over the last 5 years and are planned to grow their EPS by at least 12% for the next 5 years. Finally, all of them are selling for 24 times their current earnings or less.
My favorite in that list being probably Genpact and Couche-Tard.