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I prefer to use trailing Price/Earning Ratios, though it's not the only metric I use, when looking at stocks. The problem with forecasts is how far wrong you can be. The guys at Bespoke have tracked how poorly analysts did this past earnings quarter. Just four-and-a-half months ago, Wall Street saw a rosy future.

It's actually worse than that. If I understand the chart correctly, it shows the sum of the previous four quarter earnings. Wall Street analysts weren't even close this earnings quarter.

Posted by edelfenbein at February 18, 2009 12:29 PM