Navtej Kohli looks at some unconventional metrics to know which companies are doing well despite recession.

Do you wish to know if the economy is falling apart or not? According to Fed there are mixed signals to indicate a crisis in home finance, unemployement report, strong productivity numbers and an expectation (from analysts) of a 15% gain in corporate profits for 2008.

The good news is that due to the collateral damage and decline in consumer spendings, shares of reputed companies has become more affordable. The S&P 500 index is down 6.9% so far this year, which puts it at 17 times estimated 2007 earnings. If earnings growth meets expectations, you’re paying 15 times 2008 earnings. That ratio is right in the middle of the historical range.

-Navtej Kohli

2 Responses to “Navtej Kohli looks at some unconventional metrics to know which companies are doing well despite recession.”

  1. Susan Kishner Says:

    I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.

    Susan Kishner

  2. navtej-kohli Says:

    Hi Susan, I’ll write a lot more about the latest business trends in future. If you need articles on something specific then I would be glad to write on that.

Leave a Reply