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Buy indicators for high PE stocks?

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  • Buy indicators for high PE stocks?

    Some companies have high relative strength (momentum relative to other publicly traded companies) and are "hot" in that they have high Price/Earnings Ratios, and high Relative Price/Earnings ratios to boot. As these are not relatively unknown companies waiting to be "discovered", how do individual investors determine an appropriate entry point for these high PE stocks, when the Price/Sales Ratio, Price/Earnings to Growth (PEG) ratio, and/or the Price to Free Cash Flow Ratio are high?
    What do they look for?
    How and where do they learn what to look for?
    Are these high PE companies mostly traded by institutional investors and day traders?
    Should "buy and hold" individual investors stay away from these high PE Stocks?
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