Model manager BSGL has created a portfolio loaded with equities with at least a 15% return on equity and a PEG ratio that factors a company’s earnings growth into the standard price to earnings ratio formula. This is done by dividing the company’s price to earnings ratio by its annual earnings per share. Often, this can help an investor better determine whether or not a stock is really over-priced—something price to earnings ratio does not always accurately portray.
Apple Inc (NASDAQ:AAPL) As industry leaders, Apple has redefined the way we listen to music and look at computers and their products show no sign of a losing streak, with their newest product—the infamous iPad—selling over 2 million units within just 2 months of release. Their products sell well and are not cheaply priced and their earnings per share is impressive. While their price to earnings ratio is high compared to others in the sector, Apple’s future potential, when gauged by past successes, is really unlimited and makes for a solid foundation to optimistic investors.
Amazon.com Inc (NASDAQ:AMZN) If there is one company that seems to be weathering the economic storm of the century well, it is Amazon. Over the past three years their stock has gained over 69% and shows no real signs of slowing down. With the release of their e-reader, the Kindle, they’ve managed to carve out an entirely new market and must-have product during a time of high unemployment and low consumer spending. Most recently, they’ve expanded their potential market share by allowing their e-Reader to be sold at Target stores and by opening an automotive section to Amazon.com. While their price to book and price to earnings ratios are still rather high and their earnings per share low, their historical revenues and potential for future continued growth are extremely positive.
