3 Stocks to Buy if They Take a Dip
There's a lot to be said for delayed gratification -- and it's true in investing, too. For example, imagine you think the Progressive insurance company is terrific, with a golden future, and you're eager to be a shareholder. You might buy shares now -- but they seem overvalued, with their forward-looking price-to-earnings (P/E) ratio recently 25, well above the five-year average of 17. At such a level, there's a decent chance they'll drop closer to their intrinsic value instead of continuing to climb higher.
For best results, aim to buy into great companies at great -- or at least good -- prices. You might add Progressive to your watch list and wait for a better price. Here are three great performers you might also add to that watch list, waiting for a better entry point.
Apple (NASDAQ: AAPL), with a recent market value near $2.8 trillion, is an interesting beast. While many popular technology-heavy companies have seen their stocks plummet in the recent market downturn, Apple shares were recently only 5% off their 52-week high. The company's forward P/E was recently 27, well above its five-year average of 22, and suggesting that it's overvalued.
Source Fool.com
