Which of the following would most likely represent a buying opportunity for a value stock investor?
A) LULU has a P/E of 35 and the company announces continued earnings growth of 20%.
B) ABX with a P/E of 12 announces an increase of 2% in its quarterly EPS.
C) RIMM pays no dividend, has recorded a loss of $0.20 a share and a positive cash flow of $0.28 a share.
D) ED's P/E is 9 compared to the industry average of 15 and its EPS growth is the same as the rest of the industry.
E) None of these represent a buying opportunity for a value stock investor.
Correct Answer:
Verified
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