Robinhood Markets, Inc. (NASDAQ: HOOD ) is undoubtedly the super star in the stock market in recent months. Its stock price surged by over 380% over the last year. The stock has completely changed from a retail hype stock to

My investment philosophy centers on three primary areas of focus. First, I specialize in analyzing high-quality growth companies with sustainable competitive advantages and expanding market opportunities, particularly enjoying uncovering emerging growth stories before they gain widespread attention. Second, I have developed expertise in turnaround situations and contrarian investments, seeking fundamentally sound companies trading at significant discounts due to temporary headwinds or market pessimism. Third, I am passionate about providing thoughtful commentary on broader market conditions, macroeconomic trends, and sector rotations. My educational background at the University of Virginia has equipped me with rigorous analytical skills through both coursework and practical application. This academic foundation, combined with four years of real-world investing experience, has taught me the importance of disciplined research, risk management, and maintaining a long-term perspective. I am motivated to write on Seeking Alpha to share well-researched investment ideas and market insights with fellow investors. My goal is contributing valuable analysis that helps investors make informed decisions across growth opportunities, contrarian plays, and broader market understanding through transparent assessments backed by thorough research.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

My bullish view on Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM ) aka TSMC has been playing out very nicely as the stock has posted great outperformance vs. the S&P 500 ( SP500 ):

I aim to provide alpha-generating investment ideas. I am an independent investor managing my family’s portfolio, primarily via a Self Managed Super Fund. You can expect my articles to deliver a clearly structured, evidence-based thesis. But first and foremost, I encourage readers to judge me on my performance.I have a generalist approach as I explore, analyze and invest in any sector so long there is perceived alpha potential vs the S&P500. The typical holding period ranges between a few quarters to multiple years.A bit about how I approach research and coverage of a stock:I build and maintain comprehensive spreadsheets showing historical data on the financials, key metric disclosures, data on the guidance and surprise trends vs consensus estimates, time-series values of the valuations vs peers, data on key coincident or leading indicators of performance and other monitorables. In addition to the company’s filings, I also keep tabs on relevant industry news and reports plus other people’s coverage of the stock. In some cases, such as during times of a CEO change, I will do a deep dive on a key leader’s background and his/her past performance record.I very rarely build DCFs and project financials many years out into the future as I don’t think it adds much value. Instead, I find it more useful to assess how a company has delivered and the broad outlook on the 5 key drivers of a DCF valuation: revenues, costs and margins, cash flow conversion, capex and investments and the interest rates (which affect the discount rate/opportunity cost of capital).Associated with VishValue Research

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

It has been a mediocre year for Canadian tech stocks. The S&P/TSX Information Technology index is ahead only 8.31 per cent year-to-date, less than the TSX Composite.

Our biggest tech company, Shopify SHOP-T, is doing somewhat better, with a gain of about 14 per cent so far in 2025. But that’s well off the pace of last year’s 48 per cent gain. Constellation Software CSU-T is up about 12 per cent year-to-date, also well short of its pace last year when it gained 35 per cent. Another 2024 high-flyer, Descartes Systems DSG-T, which specializes in providing solutions for import/export businesses, is down almost 12 per cent as global trade slows in the face of Donald Trump’s tariff blitz.

There is one major exception to these disappointing results. Shares in Celestica CLS-T continue their strong uptrend, now in its third year. The stock had traded in the $5 to $15 range from 2005 to the spring of 2023. Then it suddenly took off, posting gains of 154 per cent in 2023 and 242 per cent in 2024. So far this year, it’s up about 66 per cent.

I added Celestica to my Internet Wealth Builder recommended list in November 2023 at $38.46. At that point, the p/e ratio was a very reasonable 16.72. The shares closed Friday at $219.79, up 471 per cent from our original recommendation. The p/e is now at 44.86, which is high but not outlandish for a tech stock (Nvidia is trading at 55 times earnings).

Here’s the latest update on Celestica.

Celestica (TSX, NYSE: CLS)

Originally recommended on Nov. 20/23 at C$38.46, US$28.05. Closed Friday at C$219.79, US$160.12.

Background: Toronto-based Celestica was originally part of IBM. In 1996, it was sold to Onyx Corp. It began trading publicly in 1998 with the sale of 20.6 million shares at US$17.50. The company employs 26,000 people.

Celestica has two operating segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS).

The ATS segment consists of its Aerospace and Defense, Industrial, HealthTech, and Capital Equipment businesses. The CCS segment consists of the company’s Communications and Enterprise (servers and storage) end markets.

Performance: The share price took a dive in January and plunged again in April in the wake of the “Liberation Day” tariff announcements. However, it recovered quickly and recently hit a new high of $224.36.

Recent developments: First quarter results continued to show strong growth in revenue and earnings. Revenue for the three months to March 31 was $2.65 billion, up 20 per cent from the same period in 2024. Adjusted earnings per share came in at $1.20 compared to $0.83 the year before. Note that the company reports in U.S. dollars.

CEO Rob Mionis said both figures surpassed the upper end of the company’s guidance range. “This strong performance was further highlighted by our highest ever adjusted operating margin of 7.1 per cent,” he added.

The first quarter results and a strengthening demand have resulted in new guidance for the full 2025 fiscal year. Celestica now expects revenue to reach $10.85 billion, an increase from the prior forecast of $10.7 billion. Adjusted earnings per share are expected to be $5.00, up from the previous guidance of $4.75.

Second quarter results will be released on July 29.

Dividend and buybacks: The stock does not pay a dividend, but the company spent $75 million in the quarter to buy back 600,000 shares.

Outlook: The strong first quarter results and the improved revenue and profit guidance are encouraging.

Conclusion: I’ve advised our readers to take half profits on the stock. New investors may want to watch for dips, preferably below $210, to take an initial position.

Gordon Pape is editor and publisher of the Internet Wealth Builder and Income Investor newsletters.

Yes, it is possible for a stock to have a negative price-to-earnings (P/E) ratio.

While the P/E ratio is often seen as high or low, a negative P/E occurs if a company has a loss for an accounting period rather than a profit.

Since the P/E ratio is a stock price relative to earnings-per-share, a high P/E ratio means that a stock’s price is high relative to earnings. A low P/E ratio indicates that a stock’s price is low compared to earnings.

Of course, you’d only be able to conclude that it’s high or low by tracking it over time. For example, if it rarely changed or changed little, you’d perceive it as neither high nor low, but stable.

Key Takeaways A stock can have a negative P/E ratio—for example, if a new company hasn’t accumulated earnings yet.

A consistently negative P/E ratio can indicate a risk of bankruptcy for the company.

A high P/E ratio means a stock’s price is high relative to earnings.

A low P/E ratio indicates that a stock’s price is low compared to earnings.

The price-to-earnings (P/E) ratio shows what the market is willing to pay today for a stock based on its past or perceived future earnings.

What Is the P/E Ratio?

The P/E ratio compares the price of a share of a company’s stock to the earnings per share. Earnings per share is the company’s profit, or earnings, divided by its number of shares outstanding.

It shows the price investors are willing to pay for a stock based on its past or perceived future earnings.

You calculate it with this formula:

Share Price ÷ Earnings per Share

P/E is a metric that investors use, along with others, to assess whether or not to invest in a particular company. You can study it for a single business as well as compare it to P/Es for other companies in the same industry.

For example, if the P/E ratio for one company differs greatly from others in its industry, you’d want to research why this is so and whether an investment opportunity exists.

Important Demand for a stock can reflect investors’ belief that its price is poised to appreciate. Due to the increased buying, the rising stock price raises the P/E ratio. Thus, a high P/E ratio could be an indicator that investors expect earnings growth in the coming quarters.

What Is a Negative P/E Ratio?

A negative P/E ratio means a company has negative earnings—it’s losing money. The denominator of the P/E formula shown above would be a negative number.

Even the most established companies experience down periods, which may be due to environmental factors that are out of the company’s control.

However, companies that consistently show a negative P/E ratio are not generating sufficient profit and run the risk of bankruptcy.

A negative P/E ratio may not be reported. Instead, the earnings per share (EPS) might be reported as “not applicable” for quarters in which a company reported a loss.

Investors buying stock in a company with a negative P/E ratio should be aware that they are buying shares of a company that has been unprofitable in previous quarters. They should be mindful of the risks that implies.

Implications of a Negative P/E Ratio

While a negative P/E ratio reflects no earnings per share and that a company is reporting losses, this is not always a sign of impending bankruptcy.

A company might have a negative P/E ratio, yet be on a path to growth. It could be a start-up that shows enormous promise but isn’t making a profit yet.

In fact, in some sectors, it is not uncommon for companies to show negative P/E ratios when they are newly launched.

For example, pharmaceutical companies that invest billions of dollars in drug research may report a loss for years before turning a profit.

Also, technology companies may post a loss initially, yet the stock price may rise significantly due to market expectations of positive earnings growth in the coming years.

In addition, if a company changes its accounting systems or policies, that might change the P/E ratio.

Similarly, changes in depreciation or amortization policies in a particular year or a market trend might cause companies to report a negative P/E ratio temporarily.

An investor should be wary if a company consistently shows a negative P/E ratio for a long period—for example, five years in a row. If this is the case, then the company is not in good financial health.

Fast Fact As with any financial metric, it’s important and very useful to compare the P/E ratio with the P/E ratios of other companies in the same industry.

Uses for the P/E Ratio

Generally, investors use the P/E ratio, along with other metrics, to assess whether or not to invest in a particular company. You can study it for a single business as well as compare it to P/Es for other companies in the same industry.

For example, if the P/E ratio for one company differs greatly from others in its industry, you’d want to research why this is so and whether an investment opportunity exists.

In particular, many investors use the P/E ratio to determine if a stock is overvalued or undervalued. They can also use it to gauge market expectations for future earnings growth.

Companies that consistently show a negative P/E ratio are not generating sufficient profit and run the risk of bankruptcy.

Is a Negative P/E Ratio a Bad Thing? In and of itself, a negative P/E ratio means that a company had a loss for the accounting period. That’s not good. However, the loss could be temporary due to a variety of legitimate reasons. So, don’t judge the company’s value based on a single negative P/E. Track it over time and be sure to use other financial metrics along with the P/E ratio when evaluating a company for an investment.

What Is the Price-to-Earnings (P/E) Ratio? The price-to-earnings (P/E) ratio measures a company’s share price relative to its earnings per share (EPS). It helps to assess the relative value of the company’s stock.

What Are Some Companies With Negative P/E Ratios? In June 2025, companies with negative P/E ratios included Sachem Capital (USA): -7.77; MicroStrategy (USA): -16.9; Mesoblast (Australia): -0.1889, Kuuhubb (Finland): -0.2439.

The Bottom Line

It’s possible for a company to have a negative price-to-earnings (P/E) ratio but it’s not always a cause for concern.

There are various reasons for a negative P/E ratio—for instance, a company might be new and not yet have made a profit.

However, the alarm bells should go off if a company consistently shows a negative P/E ratio for a long period, such as multiple consecutive years. This indicates a business in trouble.

Just when analysts expected some cooling off, the yellow metal surprised everyone by heading toward its all-time highs.

Precious metals such as gold and silver are once again on an upswing, driven by safe-haven buying amid the Israel-Iran conflict and weakness in the dollar index.

On Friday, gold and silver settled on a positive note in the international markets. Gold August futures contract closed at $3,452.80 per troy ounce, up 1.48 percent, and silver July futures contract settled at $36.355 per troy ounce, up 0.17 percent.

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Domestic markets also saw positive movement. The gold August futures contract settled at Rs 1,00,276 per 10 grams with a gain of 1.91 percent and the silver July futures contract settled at Rs 1,06,493 per kg with a gain of 0.57 percent.

Geopolitical tensions are driving gold and silver prices due to investors’ flight-safety instinct. Global equity markets plunged and crude oil prices surged, which also supported prices of precious metals.

“Gold prices closed above $3,450 per troy ounce and could test their previous lifetime high once again in the international markets, and silver prices could also follow gold in the upcoming sessions. Weakness in the rupee could also support prices of gold and silver. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and geopolitical tensions,” said Manoj Kumar Jain, director of Prithvi Finmart.

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Just when analysts expected some cooling off, the yellow metal surprised everyone by heading toward its all-time highs.

Factors driving the rally

After seeing a rally towards the Rs 99,000 mark in April driven by the tariff wars set off by the US, gold prices on the MCX had cooled to Rs 92,000 level in May 2025 on easing tensions. However, things have changed drastically in the last couple of sessions.

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Also read | Precious metals help multi-asset allocation funds beat returns of diversified equity funds

“In uncertain times, particularly war-like situations, gold prices increase and this particular conflict could also have an impact on crude prices and global trade as well. There could be a scenario where gold prices may go up further,” said Harshad Chetanwala, co-founder, MyWealthGrowth.com.

Another factor that is helping gold rally is rate cut expectations from the US Federal Reserve.

“US inflation data has softened. As expectations of interest rate cuts rise, real yields decline—making gold, a non-yielding asset, more attractive. Further, countries like China and India continue to accumulate gold in large quantities,” said Viral Bhatt, founder, Money Mantra.

According to Vivek Banka, co-founder, GoalTeller, gold has recently surpassed the euro to become the second largest held reserve asset globally, indicating significant and continuous buying by central banks along with large investors.

Also read | A Smart Start: Decoding health insurance for first-time buyers

In short, gold is in demand for both emotional and institutional reasons.

What’s the outlook?

Before the recent flare-up, analysts had begun cautioning about gold’s steep rally. Technical indicators suggested that prices were overheated. Some even forecasted a correction or sideways consolidation.

Now the sentiment has changed in favour of gold again. “In investing, perception often outruns data—and right now, the world perceives risk, and gold is its safe haven,” said Bhatt.

Silver has also broken out technically of multi-year zones and looks poised to have a short-term upward move.

“Trump’s failure to contain geopolitical issues and the highly escalated Israel-Iran tensions will continue to put upward pressure on gold prices,” said Banka.

What should investors do?

Overall allocation in gold can be around 10-15 percent depending on the investor’s profile. Further, gold has to be looked at from the allocation perspective and not from just a returns-generating perspective.

“We still continue to share that this allocation can be maintained all the time. Another important thing is gold prices have surged over the last couple of years; hence, anyone who wants to invest in gold from a long-term perspective may like to hold on for some time than rush to invest in one go at these prices,” said Chetanwala.

Also read | Silver ETF AUM doubles in a year, outpaces gold ETFs despite lower returns

Banka also suggests that investors who hold gold should continue to stay invested over the next few quarters as it continues to be a great hedge against all these uncertainties. “Incremental exposures can continue in a staggered manner,” he said.

According to Bhatt, most Indian portfolios are dominated by equity and real estate. “If your gold allocation is below 5–10 percent, consider topping it up and use gold mutual funds or ETFs (exchange-traded funds) as they are cost-effective and regulated.”

However, he cautions investors against chasing short-term momentum in gold.

“Entering gold purely because it’s in the news can backfire, as prices may retreat if tensions ease or the US Fed delays cuts. Also, avoid lump-sum investments at all-time highs. The smart strategy at this point would be to go with a staggered approach via SIPs (systematic investment plans),” said Bhatt.