The Milwaukee Journal Sentinel, May 30th, 1999
The P/E ratio is beginning to matter.
Investors are watching this seemingly straightforward number more closely as major market indexes begin to show signs of weakness.
Both the Dow Jones industrial average and the Standard & Poor's 500 index hit year-to-date highs on May 13 and have trended downward since. Stocks with the highest P/E ratios have taken much of the hit. Market professionals say the P/E, or price-to-earnings ratio, is an important starting point for stock analysis. But they warn that the P/E ratio comes in many forms and can mislead all but the most thorough analyst. "When you...
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