This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

3 of Wall Street's Future $100 Stocks

How can you reconcile trailing 12-month P/E ratios of 14, 173 and 72 for AAPL, AMZN and FB, respectively? Or forward P/Es of 211 and 16 for P and ZNGA? You cannot. They're all over the board.

Pull up almost any statistical gauge of valuation and you come to the same conclusion: This makes absolutely no sense. That's what tends to happen when something becomes irrelevant.

You see the same thing taking place within a growing number of academic disciplines -- the move from quantitative to qualitative research. Or, at the very least, the use of qualitative data to better color quantitative results. This method also works in reverse.

Investors need to do the work to understand the stories that color a space or a particular company's narrative. That's where you find some consistency. And that's where the bull case exists; not in an MBA's tabulations. Numbers can complement the story, but they do not write it. People do.

As powerful as the stock market is, it cannot cause wild, day-to-day gyrations in a solid company's business model or how customers use a product or service like it can with its valuation. Facebook might lose $5 billion in market cap in a week, but don't expect Mark Zuckerberg to pull a Reed Hastings and change direction on an almost as frequent basis.

Visionaries like Jobs, Bezos, Zuckerberg, Pincus and Westergren not only stand several steps ahead of most others, they prepare their companies well to hit each signpost along the way. I've got my money on the final three as they continue to position their companies to take the lead as the mobile arena frantically emerges and our social, on-demand and personalized world continues to develop.

Two, three, five, 10 years from now, I do not want to lament having missed out on the companies that ended up being the next Apple, Google, or Amazon.
At the time of publication, the author was long FB, P and ZNGA.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ZNGA $1.83 0.00%
AAPL $93.99 0.00%
P $8.00 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs