Home-improvement retailer Lowe's (NYSE: LOW), and image-browsing platform Pinterest (NYSE: PINS) are two of the cheapest stocks I own. And yet I can still hear readers shouting reasons at me why they aren't cheap enough. I appreciate the complexity of this topic and I agree these two stocks aren't necessarily a value-stock investor's wildest dreams come true on the surface.
The thing is, most valuation metrics, like the price-to-earnings (P/E) ratio, look back at where a company has been. But they don't tell you where the company is going. The challenge of investing is to take both into consideration -- balancing the value proposition today in light of a company's business prospects tomorrow. I take this more holistic view, and it's why I can comfortably argue that Lowe's and Pinterest are two of the cheapest stocks I own.
Image source: Getty Images.
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