The Lincoln National Corporation (NYSE:LNC) share price has done very well over the last month, posting an excellent gain of 26%. The last 30 days bring the annual gain to a very sharp 34%.
Although its price has surged higher, given about half the companies in the United States have price-to-earnings ratios (or “P/E’s”) above 20x, you may still consider Lincoln National as a highly attractive investment with its 7.8x P/E ratio. However, the P/E might be quite low for a reason and it requires further investigation to determine if it’s justified.
While the market has experienced earnings growth lately, Lincoln National’s earnings have gone into reverse gear, which is not great. The P/E is probably low because investors think this poor earnings performance isn’t going to get any better. If this is the case,…
