agreed, despite the growth stock's derating, using 2023 earnings they still need to correct by 10-20% to come closer to pre-Covid norms. To your point, a quality food/chemical ingredient company like Croda which was trading on 18-22* (using rolling 24m forward EPS), rose to 38* in Dec 21, now 30* with only mid single digit revenue & earnings growth. I suspect we may see a grind downward of lower highs & lower lows for a few months.
agreed, despite the growth stock's derating, using 2023 earnings they still need to correct by 10-20% to come closer to pre-Covid norms. To your point, a quality food/chemical ingredient company like Croda which was trading on 18-22* (using rolling 24m forward EPS), rose to 38* in Dec 21, now 30* with only mid single digit revenue & earnings growth. I suspect we may see a grind downward of lower highs & lower lows for a few months.