We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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%.
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.
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.
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.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks.com featured highlights Kontoor, The Buckle, Lovesac, BRP and Lucira Health
For Immediate Release
Chicago, IL – April 22, 2022 – Stocks in this week’s article are Kontoor Brands (KTB - Free Report) , The Buckle (BKE - Free Report) , Lovesac (LOVE - Free Report) , BRP (DOOO - Free Report) and Lucira Health .
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.
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.
Click here to sign up for a free trial to the Research Wizard today.
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.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.