Laggards usually appear to be relatively cheaper than market leaders, and that attracts unskilled investors. Don’t be tempted by a stock with a relatively low P/E or one that hasn’t appreciated as much as has the leader in its industry. There’s always a reason why one stock trades at a high multiple and another trades at a low multiple. More times than not, the expensive market leader is actually cheap and the laggard is really the more expensive choice.
