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Image: Bigstock featured highlights include Disney, Casey's General Stores, OpGen, Accelerate Diagnostics and Nektar Therapeutics

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For Immediate Release

Chicago, IL – April 19, 2023 – Stocks in this week’s article are Disney (DIS - Free Report) , Casey's General Stores (CASY - Free Report) , OpGen (OPGN - Free Report) , Accelerate Diagnostics (AXDX - Free Report) and Nektar Therapeutics (NKTR - Free Report) .

Forget Bargain Hunting, Buy These 5 Stocks with Rising P/E

Investors commonly employ the strategy of seeking out stocks with a low price-to-earnings (P/E) ratio. The rationale behind this strategy is the belief that a lower P/E ratio correlates with a higher stock value.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. This is because not only low P/E but also stocks with a rising P/E can fetch strong returns. In this regard, investors can bet on the likes of the following companies.

Rising P/E: A Useful Tool

The concept is that as earnings rise, so should the price of the stock. As forecasts for expected earnings come in higher, strong demand for the stock should continue to push up its prices. After all, astock's P/E gives an indication of how much investors are ready to shell out per dollar of earnings.

Suppose an investor wants to buy a stock with a P/E ratio of 30. This means that he is willing to shell out $30 for only $1 worth of earnings as he expects earnings of the company to rise at a faster pace in the future owing to strong fundamentals.

So, if the P/E of a stock is rising steadily, it means that investors are assured of its inherent 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.

Here are five out of the 69 stocks:

Disney: The Zacks Rank #2 company has assets that span movies, television shows and theme parks. You can see the complete list of today's Zacks #1 Rank stocks here.

The average earnings surprise of DIS for the past four quarters is 2.36%.

Casey's General Stores: The Zacks Rank #2 company operates convenience stores under the Casey's and Casey's General Store names in 16 Midwestern states, mainly Iowa, Missouri and Illinois.

The average earnings surprise of CASY for the past four quarters is 9.94%.

OpGen: This Zacks Rank #2 company is a microbial genetics analysis company.

The average earnings surprise of OPGN for the past four quarters is 9.79%.

Accelerate Diagnostics: The company is focused on developing and commercializing instrumentation for the rapid identification and antibiotic susceptibility testing of infectious pathogens. The company has a Zacks Rank #2.

The average earnings surprise of AXDX for the past four quarters is 16.22%.

Nektar Therapeutics: The Zacks Rank #2 biopharmaceutical company is focused on the development of treatments utilizing its PEGylation and advanced polymer conjugate technology platforms.

The average earnings surprise of NKTR for the past four quarters is 31.40%.

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 at:

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 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 >>.

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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 information about the performance numbers displayed in this press release.

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