I want to create 3 statement, comparable company, and DCF models for a well known grocery store/supermarket chain. My ultimate goal is to use the analysis to create a solid stock pitch for interviews. I've identified a few stocks that analysts are bullish on, but they all have high P/E ratios: Harris Teeter (19.62), Kroger (21.08), Whole Foods (42.44), Fresh Market (46.43).
How can analysts be bullish on stocks with P/E ratios above 40? I'm leaning towards either Kroger or Harris Teeter--will I have a hard time pitching the stock to an interviewer if the P/E is above 20 or is this standard for the industry?