Zacks.com featured highlights include Eastside Distilling, Adial Pharmaceuticals, The Buckle, Ruth's Hospitality Group and Insight Enterprises
For Immediate Release
Chicago, IL – August 29, 2022 – Stocks in this week’s article are Eastside Distilling EAST, Adial Pharmaceuticals ADIL, The Buckle BKE, Ruth's Hospitality Group RUTH and Insight Enterprises NSIT.
Forget Bargain Hunting: Play 5 Stocks with Rising P/E
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.
The screener yields winning stocks like Eastside Distilling, Adial Pharmaceuticals, The Buckle, Ruth's Hospitality Group and Insight Enterprises.
Rising P/E: A 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.
Here are five of the 70 stocks:
Eastside Distilling: The Zacks Rank #2 company is involved in producing handcrafted spirits primarily in the United States. You can see the complete list of today's Zacks #1 Rank stocks here.
The average earnings surprise of EAST for the past four quarters is 25.82%.
Adial Pharmaceuticals: Adial Pharmaceuticals Inc. is a clinical-stage biopharmaceutical company. The stock carries a Zacks Rank #2.
The average earnings surprise of ADIL for the past four quarters is 7.84%.
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.
The average earnings surprise of BKE for the past four quarters is 12.65%.
Ruth's Hospitality Group: The Zacks Rank #2 company is the largest fine dining steakhouse company in the United States as measured by the total number of company-owned and franchisee-owned restaurants.
The average earnings surprise of RUTH for the past four quarters is 35.20%.
Insight Enterprises: The company is a global direct marketer of brand name computers, hardware and software. It has a Zacks Rank #1.
The average earnings surprise of NSIT for the past four quarters is 16.15%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
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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/1972791/forget-bargain-hunting-play-5-stocks-with-rising-pe
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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Strong Stocks that Should Be in the News
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Ruth's Hospitality Group, Inc. (RUTH) : Free Stock Analysis Report
Buckle, Inc. The (BKE) : Free Stock Analysis Report
Insight Enterprises, Inc. (NSIT) : Free Stock Analysis Report
Eastside Distilling, Inc. (EAST) : Free Stock Analysis Report
Adial Pharmaceuticals, Inc. (ADIL) : Free Stock Analysis Report
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