After a seemingly endless losing streak, stocks finally managed to close out a winning quarter last week. But as the rally has started to stall out, smart investors are keeping an eye on their portfolios -- and looking for signs that some of their stocks may have risen so fast that they won't be able to sustain their gains.
Where did the value go? Value investors always look for strong stocks at bargain prices. At the market's lows in March, those who sought out good value stocks enjoyed a veritable all-you-can-eat buffet of potential selections. The extremely steep and rapid bounce off those lows gave opportunistic investors a quick payoff as a reward for their courage.
Now, though, a number of stocks don't look anywhere near as cheap as they did a few months ago. Take a look at some examples:
Stock
2nd -Quarter Return
Current P/E
J.Crew (NYSE: JCG)
105.0%
36
Massey Energy (NYSE: MEE)
93.5%
26
Owens-Illinois (NYSE: OI)
94.0%
38
Temple-Inland (NYSE: TIN)
146.6%
34 Continued...
Dan Caplinger is a contract writer for The Motley Fool.
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