For Immediate Release
Chicago, IL – April 22, 2022 – Stocks in this week’s article are Kontoor Brands KTB, The Buckle BKE, Lovesac LOVE, BRP DOOO and Lucira Health LHDX.
Grab Market Momentum with 5 Top Rising P/E Stocks
Despite rising rate worries, Wall Street regained momentum this week. Since the Q1 reporting cycle is underway, investors have probably shifted their focus to earnings from geopolitics. Investors should note that corporate earnings in the United States have been in decent shape. So, a brave investor right now should reap rewards ahead.
While there are several momentum plays at this moment, investors can also try out some rising P/E stocks. The concept definitely goes against the method of conventional investing where investors always look for stocks with low P/E ratios and try to tap undervalued stocks.
But there is another side to the story that highlights the strength of the stocks with an increasing P/E. This often-overlooked strategy can prove pivotal in finding great stocks. Let's dig a little deeper.
How Can Rising P/E Be Helpful?
Investors should note that stock prices move in tandem with earnings performance. If earnings come in stronger, the price of a stock soars. Solid quarterly earnings and guidance in turn boost the earnings forecast, 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, expect some strong positives out of it as well as solid and faster earnings growth. Moreover, 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 stocks that made it through the screen:
Kontoor Brands: The apparel company has a Zacks Rank #2.
The average earnings surprise of KTB for the last four quarters is 18.06%.
The Buckle: This is a leading retailer of medium to better-priced casual apparel, footwear, and accessories for fashion-conscious young men and women. It has a Zacks Rank #1.
The average earnings surprise of BKE for the last four quarters is 45.00%.
Lovesac: Zacks Rank #1 Lovesacretails home furnishing products.
The average earnings surprise of LOVE for the last four quarters is 231.48%.
BRP: Zacks Rank #1 BRP designs, develops, manufactures and distributes recreational vehicles.
The average earnings surprise of DOOO for the last four quarters is 67.82%.
Lucira Health: Medical technology company, Lucira Health is focused on the development and commercialization of transformative and infectious disease test kits. The LHDX stock has a Zacks Rank #2.
The average earnings surprise of LHDX for the last four quarters is 8.02%.
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.
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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/1904109/grab-market-momentum-with-5-top-rising-pe-stocks
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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Buckle, Inc. The (BKE) : Free Stock Analysis Report
The Lovesac Company (LOVE) : Free Stock Analysis Report
BRP Inc. (DOOO) : Free Stock Analysis Report
Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report
Lucira Health, Inc. (LHDX) : Free Stock Analysis Report
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