NEW YORK (Reuters) – One out of every 10 companies in the SP 500 index — including stalwarts like Apple and JPMorgan Chase — is now cheaper than during the 2008-2009 market meltdown.
Even as SP 500 earnings soar past Wall Street estimates quarter after quarter, the lack of investor confidence has dropped the forward price-to-earnings ratio of at least 50 of the largest U.S. companies below their crisis lows, according to a screen of Thomson Reuters data.
Investors are now willing to risk less cash for every $1 in earnings they expect to rake in for upcoming quarters than they were in 2008 or 2009.
The companies in question are not exactly obscure. Besides Apple Inc (AAPL.O) and JPMorgan Chase Co (JPM.N), others on the list include Microsoft Corp (MSFT.O) and Wal-Mart Stores Inc (WMT.N), illustrating the extent of investor pessimism.
“Risk aversion is so great right now that high quality U.S.
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