For Immediate Release
Chicago, IL – December 6, 2019 - Stocks in this week’s article are Alexion Pharmaceuticals Inc. ALXN, OpGen Inc. OPGN, Integer Holdings Corp. ITGR, ReWalk Robotics Ltd. RWLK and Civeo Corp. CVEO.
Adopt Rising P/E Technique with These 5 Top-Ranked Stocks
With key U.S. equity indexes hovering around all-time highs, investors’ search for stocks with a low price-to-earnings (P/E) ratio is understandable.
The idea is that the lower the P/E, the higher will be the value of the stock. The simple logic that a stock’s current market price does not justify (is not equivalent to) its higher earnings and therefore has room to run explains investors’ inclination toward low P/E stocks.
But stocks with a rising P/E can be equally worth buying. We’ll tell you why.
Why Rising P/E a Valuable Tool?
Investors should note that stock price moves in tandem with earnings performance. If earnings come in stronger, the price of a stock shoots up. Solid quarterly earnings and the forward guidance boost earnings forecasts, leading to stronger demand for the stock and an uptrend in its price. So, if the price is rising steadily, it means that investors are assured of the stock’s fundamental strength and expect some strong positives out of it.
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/655439/adopt-rising-pe-technique-with-these-5-topranked-stocks
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Civeo Corporation (CVEO) : Free Stock Analysis Report
Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
Alexion Pharmaceuticals, Inc. (ALXN) : Free Stock Analysis Report
OpGen, Inc. (OPGN) : Free Stock Analysis Report
ReWalk Robotics Ltd (RWLK) : Free Stock Analysis Report
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