Stock Picks for a Recession: Ford, Airlines & Energy

The Most Important Thing

risk is largely a matter of opinion

Sam Mendoza

·4 years ago

shared a media post in group #The Most Important Thing

Let's look at stocks that would be trading at a significant discount if their P/E ratio fell by 30% during a recession early next year. We will do this by comparing the P/E of the company (down 30% from its current value) to the five-year forward P/E to see what discount the company would be trading at.

@Nate

Sam Mendoza
Stock to Watch: Valero Energy Corporation (NYSE: VLO) • The company is currently trading at a 13.7 P/E ratio. • During a recession, its P/E could drop by 30% to 9.6. • The five-year average forward P/E for the company is 25.6. • The stock would be trading at a 62% discount during a recession.

Sam Mendoza
Stock to Watch: Charter Communications (NASDAQ: CHTR) • The company is currently trading at a 21.1 P/E ratio. • During a recession, its P/E could drop by 30% to 14.8. • The five-year average forward P/E for the company is 34.6 • The stock would be trading at a 57% discount during a recession.

Sam Mendoza
Stock to Watch: United Airlines Holdings (NASDAQ: UAL) • The company is currently trading at a 15.3 P/E ratio. • During a recession, its P/E could drop by 30% to 10.7. • The five-year average forward P/E for the company is 25.1. • The stock would be trading at a 57% discount during a recession.

Nate
I like the travel / airline picks!

Jerome Cody
I like the travel / airline picks!
[PREDICTION 2023] I expect airlines to recover and possibly surpass their 2019 levels. With Covid-19 fully behind us (hopefully), consumers will prioritize travel and experiences this year. Prepandemic, China was the largest source of outbound tourists, and its strict zero-Covid policy had global ripple effects. On January 8, the world’s second-largest economy plans on reopening its borders after three years of isolation. #The Most Important Thing ft.com/content/9f2170ab-3..

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