Tactical Allocation Companies By Pe Ratio

Price To Earning
Price To EarningEfficiencyMarket RiskExp Return
1OPP RiverNorthDoubleLine Strategic Opportunity
6.11
(0.10)
 0.52 
(0.05)
2XGLOX Clough Global Opportunities
0.0
(0.01)
 0.60 
(0.01)
3XGLVX Global Dividend and
0.0
(0.14)
 0.49 
(0.07)
The analysis above is based on a 90-day investment horizon and a default level of risk. Use the Portfolio Analyzer to fine-tune all your assumptions. Check your current assumptions here.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit. Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.