Does the present price-to-earnings ratio for oil mean there’s a bubble brewing?
Well, when assessing individual stocks, it’s much more important to look at sales and earnings for the future, not the present. That’s how long-term investors determine the best stocks to invest in.
But the reality is that oil will hit a generational short in the not-so-distant future.
You can’t benchmark these companies on 2022 estimates when they’re artificially inflated by a near-term surge in prices.
In fact, when you look at earnings multiples for five-plus years down the road, hypergrowth stocks are dirt-cheap.
That’s why I’m so bullish.
Catch the full episode at Hypergrowth Investing on YouTube!