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Zacks.com featured highlights include: GMS, Invuity, Hi-Crush, Belden and Hubbell

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For Immediate Release

Chicago, IL – July 17, 2018 - Stocks in this week’s article GMS Inc. (GMS - Free Report) , Invuity Inc. , Hi-Crush Partners LP , Belden Inc (BDC - Free Report) and Hubbell Inc (HUBB - Free Report) .

5 Top-Ranked Stocks to Ride on Rising P/E Investing

Generally, investors love stocks with a low price-to-earnings (P/E) ratio. The perception 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 is behind investors’ inclination toward low P/E stocks.

But stocks with a rising P/E can also be 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/311568/5-topranked-stocks-to-ride-on-rising-pe-investing

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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Belden Inc (BDC) - free report >>

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GMS Inc. (GMS) - free report >>