The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
By James Brumley
NEW YORK ( StreetAuthority) -- As investors have become more and more sophisticated, the price-to-earnings (P/E) ratio has begun to be viewed as a less-sophisticated, overly-simplistic tool. But sometimes, there's power in simplicity.
The fact of the matter is, the P/E ratio is still the ultimate "bottom line" concept -- how much are investors paying for earnings?With this in mind, here are three great large-cap stocks that have slumped to amazingly-low P/E ratios while investors were distracted by other things. I think each represent compelling potential bargains
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts