Below we highlight the stocks in the S&P 500 that have had the largest contractions or expansions in their P/E ratios (trailing 12-month) over the past year. We limited the list to those stocks that have had positive P/Es under 100 since last July. We also highlight each stock's one-year price change to see whether the change in P/Es has been price driven or earnings driven.
Two retailers, WFMI and SBUX, have seen the largest contraction of trailing 12-month P/E ratios over the past year. While their P/Es have come down, their valuations still remain relatively high at 28.58 and 33.22 respectively. Their P/E declines have come with large declines in their stock prices as well. RIG, on the other hand, has seen its P/E drop from 43.66 to 24.82 while achieving price appreciation of 30.52%. Five other stocks on the list of contractions have also been accompanied by a price increase -- CMCSA, ADCT, HPC, IP and EDS.
Most of the names on the list of P/E expansions have had large price increases as well. Goodyear Tire's (GT) 213% gain over the past year has caused its P/E to rise from 7.65 to 30.49. The three names on the list that have had P/E expansions and price declines are CTX, BRCM and KBH.
Below are historical P/E charts for the key stocks whose P/E contractions were earnings driven. Their stock prices rose while their P/Es declined. For anyone interested in receiving these charts on a stock or group of stocks, please email [email protected]
WFMI SBUX RIG CMCSA OMX ADCT HPC IP MNST EDS CTX GT DG JNPR BRCM WY DJ RSH KBH AAPL