For Immediate Release
Chicago, IL – November 18, 2019 - Stocks in this week’s article are Avinger Inc. AVGR, Alexion Pharmaceuticals Inc. ALXN, CyberArk Software Ltd. CYBR, Organovo Holdings Inc. ONVO and Qualys Inc. QLYS.
What Bargain Hunting? Tap These 5 Stocks with Rising P/Es
Bargain hunting or looking for stocks with a low price-to-earnings (P/E) ratio is among the widely-used investing strategies. Investors believe that the lower the P/E, the higher will be the value of the stock. The logic is simple — a stock’s current market price does not justify its higher earnings and therefore leaves room for upside.
But there is more to this whole P/E story as not only low P/E, stocks with a rising P/E can also fetch solid returns.
Rising P/E: An Useful Tool
Generally, the price of a stock rallies on a rise in earnings. As forecasts for expected earnings move higher, demand for the stock should drive its price. After all, astock's P/E gives an indication of how much investors are ready to shell out for every dollar of earnings. Thus, if the P/E of a stock is rising steadily, it means that investors are pinning their hopes on the company’s inherent strength.
Also, studies have revealed that stocks have seen their P/E ratios jump over 100% from their breakout point in the cycle. So, if you can pick stocks early in their breakout cycle, you can end up seeing considerable gains.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/621113/what-bargain-hunting-tap-5-stocks-with-rising-pe
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Qualys, Inc. (QLYS): Free Stock Analysis Report
CyberArk Software Ltd. (CYBR): Free Stock Analysis Report
Avinger, Inc. (AVGR): Free Stock Analysis Report
Organovo Holdings, Inc. (ONVO): Free Stock Analysis Report
Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report
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