Take a Cue From Chuck -- Sell Schwab

Some stocks continue to trade at high multiples even though their fundamentals do not warrant a "growth stock" price-to-earnings ratio (P/E). Mid-range brokerage firm Charles Schwab (SCHW) seems to fall into this category.

Schwab's shares hit an all-time peak of $28.80 in 2008 when its earnings per share (EPS) were on the road to $1.06 for that whole year. You could have made the case for its 27.2 P/E back then as earnings had grown by 194.4% (from $0.36 per share) in the five years since 2003....201 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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