Image source: Getty Images
It can be said that we are in the era of growth action. These companies, often oriented on technology and with a dizzying valuation, constituted many of the best purchases on the stock exchange in the current millennium.
Amazon and Apple fell into this category a long time ago, carrying price indicators to profit in triple numbers, making them to the eyes in some indicators. However, they both rewarded shareholders with indignant phrases in the long run.
Contrast this kind of shares with the approach to investing the value supported by Warren Buffett, in which sniffing of shares in underestimated companies was a way to success.
The reality is that at least in newfangled time some of these stocks with extremely high P/E are a cream cream. Armed thinking about increasing stocks, I asked my elderly friend Chatgpt to support me discover the next huge winner.
Q IA
My question: “Some shares of growth of high profit indicators are worth high valuation-where do you think I should buy? Give examples of USA and Great Britain shares.”
CHATGPT answer: “🧠Summary: Stocks for watching
US Picks: Apple, Amazon, Alphabet, Nvidia, AMD
UK Picks: Rolls-Royce, GSK, Babcock, LSEG, LSEG “
At the beginning I was disappointed that I received the names of my two sample stocks. Then I decided to decode something that seemed like a idle collection of high inventories P/E. The American official consisted of technology companies called the household, which was largely on artificial intelligence. The British contained reserves of forceful British industries, such as defense, pharmacist and fintech.
What’s more, both lists were populated by obvious names and huge enterprises. Hidden jewels were certainly not. Among my irritation, one name on the British list jumped to me.
Eye -catching
I looked Grandmother (LSE: Bab) A few years ago he shares and followed the impressed. The valuation was also high. But if I had not yet been strongly exposed to another defense company, I would probably immerse. If I took a position in the High P/E actions, I saw my triple participation for several years.
There is a good lesson there. There is more in every company than how inexpensive or high-priced it looks. In the case of Babcock, the details of the investment case are the leading and most newfangled military technology of the company.
Everyone who is guarding the melancholy state of war in Ukraine will notice how significant drone technology has become. Well, Babcock is at the forefront, with innovations like Swarmcore Managing enormous drone fleets.
One of the defects to invest in any defense is its correlation with the conflict. I am sure that we all hope for smaller wars around the world and the end of ongoing wars.
Well, if this happens, the demand for defense industry products will fall. To sum up, I think Babcock is worth looking at.
