2-27-23 I just read the most asinine analyst commentary ever.

Submitted by UstaTheStockMan t3_11de1vi in wallstreetbets

Article titled ;

" JPMorgan Says Prepare to Dump Value Stocks for Growth "

https://finance.yahoo.com/news/jpmorgan-says-prepare-dump-value-103123387.html

​

here is why it is asinine

( It takes profits to pay the bills )

The emphasis should be on both (revenue growth and profit growth ) with a consideration of the cash balances and debt ratio.

in other words, it doesn't matter how fast a stock is growing revenues if they do not have enough cash to stay solvent and the quarterly losses are such that there is no logical path to profitability and as such staying SOLVENT.

Its easy to start a company but quite another to remain in business if you're losing money.

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VisualMod t1_ja806w7 wrote

>This article is complete garbage. Anyone who believes this nonsense deserves to have their portfolio decimated when the market corrects.

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pigsgetfathogsdie t1_ja81jjo wrote

Absolutely…

You can’t have a P/E ratio without the E.

And in this market…

If the E isn’t there…you get eaten by a BEAR.

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UstaTheStockMan OP t1_ja81r98 wrote

Well said, I'll take a low peg ratio over any other metric any day of the week.

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xxpatrixxx t1_ja85vo8 wrote

Only thing people be taking in this subreddit is a peg ging.

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SirKelvinTan t1_ja85qyt wrote

There’s a reason no one on the street takes JPM’s equities research team seriously

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That-Whereas3367 t1_ja8c0e3 wrote

Translation: "Please buy our shitty growth stock so we can invest in Blue Chips."

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computerlad69 t1_ja874jv wrote

JPM pumpin' their covered calls revenue through JEPI img

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VisualMod t1_ja806d3 wrote

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UstaTheStockMan OP t1_ja9fizn wrote

Here is a value and growth stock with rock solid fundamentals

( also known as a GARP)( Growth at reasonable price )

ARCO top and bottom line looks very impressive.

ARCO is an overseas McDonalds franchisee with exclusive rights to over 20 countries and we all know McDonalds is recession proof .( the franchise is a branded 'moat' )

Pays a small but consistent dividend as well .

it is a thinly traded stock and as of yet not a well known name but the earnings and growth are top tier.at current price of 8.18 or lower ( 2/27/23) it is a steal.

Reminds me of CELH at 8 and we all know how that went

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nateccs t1_ja9lp33 wrote

bought me some CVS today, couldn't resist

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SateliteDicPic t1_ja8hspy wrote

This depends entirely on the market environment we are in as well as a few other factors. In today’s market you are 100% correct and that phenomenon SHOULD continue to become more apparent if the market is functioning appropriately.

However in a 0% rate market then buying as much growth as possible is the way to go. Look at the money made in TSLA (previous to profitability), Affirm, Zoom, etc. These firms can always borrow against or issue shares as long as growth metrics continue to look good.

In today’s market I can get 5% plus risk free - for me to take risk I will need to see an incredibly compelling opportunity. This is the issue markets face today that they haven’t in ~20 years.

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