They are now extremely cheap, both in terms of price-to-earnings and price-to-book. The proverbial cows are already out of the barn with these two stocks, so it pays to instead focus on their deep value opportunities.
But you do have to wonder what a yet-weaker Europe means for companies such as
Priceline.com (Nasdaq: PCLN),
Accenture (NYSE: ACN) and
McDonald's (NYSE: MCD). These stocks trade right near their 52-week highs.
Risks to Consider:
Upside risks? It's hard to see them. The possible moves to lighten the austerity push may help stop the bleeding of confidence and spending, but that's not a strong likelihood. Action to Take --> The U.S. economy continues to remain remarkably unscathed, so Europe's troubles aren't a reason to turn
bearish on U.S. stocks. Still, events can change quickly, and you need to be prepared to take swift action to lock-in profits if global financial markets start to grumble.
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-- David Sterman
David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of F, AA, GOOG in one or more if its "real money" portfolios.
This article originally appeared on
StreetAuthority
Author: David Sterman