The ratio for valuing a firm that compares its current share price to its earnings per share. Investors and analysts use P/E ratios to assess the relative value of a company's shares in a direct comparison. It can also be used to compare a company to its past performance or to compare broad markets over time or to one another. P/E estimates can either be forecast (projected) or trailing (backward-looking). For example the P/E ratio 1 year trailing is the price of a stock divided by its earnings from the latest year. On the other hand, the P/E ratio 1 year forecast is the price of a stock divided by its projected earnings for the coming year.
The market has been range bound for the last few weeks with volatility on the decline, and earnings all over the place. So where to go to look for a trade? Nike has already had Earnings and is near a low of the year, so seems like a good option. As a contrarian that can mean only one thing to me: I have to make a trade with the assumption it will go up from here over the next 45ish days. We will do that by making a Long Call Vertical trade to bet that it starts to head up over the next couple months. For more on my trading and how to join me in real time, see below. Watch the video to get the details. Kal Trading Risk Disclaimer All the information shared in this video is provided for educational purposes only. Any trades placed upon reliance of SharperTrades.com are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, commodities, options and forex, there is also substantial risk of loss. All tr