Would there be a good reason to buy a stock with a high P/E ratio?

Question

Would there be a good reason to buy a stock with a high P/E ratio?

Answer 1

There are good stocks with high P/E ratios, but I don't think I would seek them out.  Sometimes the P/E can be a little skewed, so It's better to look at the forward P/E

Answer 2

If their growth potential is higher than their current P/E. If their P/E is high because they had a one time unusually low quarter or year due to unforeseen events.

Answer 3

Maybe earnings have gone up dramatically this quarter, but the latest earnings report has not come out yet so that the P/E ratio does not accurately reflect the stock (Think back about a month when Google's earnings surprised everyone and the stock jumped up 20% overnight.)

If you are trading on just hype/news, then P/E doesn't really come into effect either. Just make sure you get out before the crowd changes it's mind.

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