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Biotech / Medical : BCR on NYSE [C R Bard]
BCR 331.240.0%Dec 29 4:00 PM EST

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From: jeeee44/22/2010 12:43:09 PM
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Doing some math on BCR earnings
The trailing 12 months PE is 18.44 while the forward PE is 13.83, which indicates an expected year-on-year earnings gain of 33% and a forward PE/Growth (PEG) of only .41 (normal PEG = 1). Obviously these PEs have not priced in such an earnings growth rate. Thus, the stock could go x2 and still be reasonably priced.

My experience is that over time investors’ scans pick up stocks selling at low PE vs. their earnings growth rate. When this happens, the stock corrects upward very rapidly.
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