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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: dougjn who wrote (12721)2/24/1998 4:41:00 PM
From: upanddown  Read Replies (2) of 95453
 
Doug, I would agree that forward earnings estimates and their resulting PEG's can be very unreliable, but that applies not only to oil services, but many other market sectors, especially the techs. I was really talking about RELATIVE valuations. I think that earnings forecasts for some oil sectors (like deep drillers) are more credible than other market sectors because of long-term contracts and other factors (see Baird Soule's posts on this topic).

I also think that WS pays far more attention to near-term estimates than long-term. A lot of those 5 year estimates must start with a crystal ball but still, on a relative basis, not many stock market sectors are forecasted to grow faster than their PEs and Ron's 41 oil stocks average 24.4% in 5 year growth.

Regards,
John
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