"Is Google's growth beginning to ebb? When the hotshot search company announced quarterly earnings Jan. 31 of $1.54 a share, Wall Street was shocked. That was 12.5% short of analysts' consensus estimate ($1.76). Google stock--which had been sold to the public in August 2004 at $85, then rose to $475--tumbled on the news of the Jan. 31 shortfall. Now at $340, the shares haven't been helped by a controversy over truckling to the Chinese regime's censorship and, especially, by late February remarks from its chief financial officer that growth rates were slowing."
"The truth is that this advertising business still is overvalued. Pricing it at 68 times trailing earnings, the market is forecasting high growth for many years ahead."
Domestic driller Anadarko Petroleum (nyse: APC - news - people ) (99, APC) had solid 2005 earnings, with another good gain expected in 2006. Dow Jones component 3M (nyse: MMM - news - people ) (77, MMM) reinvents its product line every five years. Earnings have grown at a 13% rate over the past five years and are likely to be up 10% this year. P/E is 18, yield 2.4%. Well-managed United Technologies (nyse: UTX - news - people ) (59, UTX) makes jet engines, air conditioners and elevators. The P/E of 19 is warranted by the 14% earnings growth rate. Yield is 1.5%.
http://www.forbes.com/forbes/2006/0417/210.html?_requestid=5199&_requestid=10381
"The truth is that this advertising business still is overvalued. Pricing it at 68 times trailing earnings, the market is forecasting high growth for many years ahead."
Domestic driller Anadarko Petroleum (nyse: APC - news - people ) (99, APC) had solid 2005 earnings, with another good gain expected in 2006. Dow Jones component 3M (nyse: MMM - news - people ) (77, MMM) reinvents its product line every five years. Earnings have grown at a 13% rate over the past five years and are likely to be up 10% this year. P/E is 18, yield 2.4%. Well-managed United Technologies (nyse: UTX - news - people ) (59, UTX) makes jet engines, air conditioners and elevators. The P/E of 19 is warranted by the 14% earnings growth rate. Yield is 1.5%.
http://www.forbes.com/forbes/2006/0417/210.html?_requestid=5199&_requestid=10381
