Beaten down JDS Uniphase may look like a steal at less than $10 a share. But the company is still trading at 180 times next year's earnings estimates and at 7.2 times its growth rate, higher than its PEG of 5.4 at the Nasdaq's peak. Analysts are predicting earnings growth of 25 percent annually now for JDS Uniphase (JDSU: down $0.34 to $8.68, Research, Estimates), compared to projections of 46.6 percent back in March 2000.
Intel's stock is 42 percent lower than it was on March 10, 2000. Yet Intel (INTC: up $0.29 to $34.84, Research, Estimates) is trading at 3 times its growth rate, compared to a PEG of 2 back in March 2000 as its estimated growth rate has slipped from 20.4 percent to 18 percent. And Microsoft, trading at 31 percent below its March 10, 2000 stock price, is slightly more expensive on a PEG basis, trading at 2.5 times its growth rate compared to 2.4 before the Nasdaq began its long descent. |
