For Immediate Release
Chicago, IL – June 10, 2022 – Stocks in this week’s article are Carriage Services CSV, Pool Corp. POOL, The Buckle BKE, Bolt Biotherapeutics BOLT, and Titan Machinery TITN.
5 Top-Ranked Stocks to Bet Big on Rising P/E Investing
Generally, investors are in search of stocks with a low price-to-earnings (P/E) ratio. The idea is that the lower the P/E, the higher will be the value of the stock. It means a stock's current market price is not priced in yet, and has room left to run owing to its higher earnings potential. This clearly justifies investors' inclination toward low P/E stocks.
But stocks with a rising P/E are also worth a bet. 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 a rise in 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. Suppose an investor wants to buy a stock with a P/E ratio of 30, it means that he is willing to shell out $30 for only $1 worth of earnings. This is because the investor expects earnings of the company to rise at a faster pace in the future on the back of strong fundamentals.
Also, studies have revealed that stocks have seen their P/E ratios jump more than 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.
Here are five of the 102 that passed the screen.
Carriage Services : This is a leading provider of death care services and products in the United States. It has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Pool Corp. : The Zacks Rank #1 company is the world's largest wholesale distributor of swimming pool supplies, equipment and related products.
The Buckle: The Zacks Rank #2 company is a leading retailer of medium to better-priced casual apparel, footwear and accessories for fashion-conscious young men and women.
Bolt Biotherapeutics :This is a clinical-stage immuno-oncology company. It currently has a Zacks Rank #2.
Titan Machinery : The Zacks Rank #2 company represents a diversified mix of agricultural, construction, and consumer products dealerships located in the upper Midwest.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1936625/5-top-ranked-stocks-to-bet-big-on-rising-pe-investing
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Pool Corporation (POOL) : Free Stock Analysis Report
Buckle, Inc. The (BKE) : Free Stock Analysis Report
Titan Machinery Inc. (TITN) : Free Stock Analysis Report
Carriage Services, Inc. (CSV) : Free Stock Analysis Report
Bolt Biotherapeutics, Inc. (BOLT) : Free Stock Analysis Report
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