Unpopular Stocks Can Become Valuable New Friends: John Dorfman

For about seven decades, academic studies have shown that unpopular stocks -- those whose price is low relative to the company’s earnings -- outperform stocks with higher price-to-earnings ratios.

I was curious about what would happen if one were to take low P-E investing to an extreme. So, beginning in 1999, I have tracked the one-year performance of the 10 stocks that begin the year with the lowest P-E ratios.