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What really makes a stock “cheap?”

Hedgeye CEO Keith McCullough explains in the clip above that most of the time, you’re probably getting crummy advice from a myopic Old Wall pundit whose math is missing the forest for the trees.

A seemingly “cheap stock” that is highly-dependent on an improving U.S. economy to meet Wall Street’s growth expectations could miss if the economy stumbles. As the company’s growth prospects deteriorate, so too do Wall Street’s earnings expectations.

McCullough uses FedEx (FDX) to explain why its shares could still get “cheaper.”

Watch the full clip for this important lesson.

Why Some Stocks Aren't As 'Cheap' As They Seem - the macro show