Let’s face it, Tesla has skyrocketed this year and currently is trading at a P/E ratio of 1,578.P/E
That’s not a misprint. Their P/E ratio is 1,578.
The last time stocks traded with P/E ratios over 1,000+ mark was near the end of the Tech Wreck in early 2,000.
And we know what happened to them.
To put things in perspective, the average stock in the S&P 500 has historically traded at a P/E ratio between 16 and 18.
Why Buy Tesla?
We’re not betting on Tesla doubling any time in the near future.
However, in our July 2020 newsletter, we recommended our readers to look at four companies that supply technology for the EV market.
Some of those technologies include 3D cameras, driverless systems, auto-sensors, and almost anything else you could expect to be on the front line for Electric Vehicles.
These are usually companies that fly under the radar but have HUGE upside potential.
The four companies we recommended were:
- Ambarella (AMBA)
- Himax (HIMX)
- Cognex (CGNX)
- Synaptics (SYNA)
So, how did they perform?
Since July, AMBA is up +131%, HMX is up +128%, CGNX is up +41%, and SYNA is up +59%.
None of these stocks are trading at outrageous P/E ratios (SYNA is the lowest trading at a 31.58 P/E) and 9 out of 10 people have never heard of them.
We’re not saying you should rush out and buy them today.
But they’re worthy of being on your radar screen for potential buys on pullbacks in the market.
The point we want you to consider here is – and, yes, here’s another shameless plug for our newsletter – our readers who bought any of these four stocks in July are very happy today.
And their profit is enormously higher, check that…many multiples higher than the cost of an annual subscription to “…In Plain English.”
So, what are you waiting for? (Go HERE NOW!)
If you don’t want to splurge on the annual subscription, try the monthly one.
There’s no long-term commitment and you can cancel at any time.
It’s a tiny investment that can yield Enormous Returns.
And It’s Not Just About Finance.