For Immediate Release
Chicago, IL – November 29, 2023 – Stocks in this week’s article are AMC Entertainment (
AMC Quick Quote AMC - Free Report) , DocuSign ( DOCU Quick Quote DOCU - Free Report) , Vivid Seats ( SEAT Quick Quote SEAT - Free Report) , Lamb Weston ( LW Quick Quote LW - Free Report) and Fiverr International ( FVRR Quick Quote FVRR - Free Report) . Why You Should Bet on These 5 Stocks with Rising P/E
Investors often opt for the stock-picking approach that involves stocks with a low price-to-earnings (P/E) ratio. This strategy is based on the notion that the lower the P/E ratio, the higher the stock value. The reasoning behind this is straightforward — when a stock's current market price does not adequately reflect its higher earnings, it suggests potential for growth.
But there is more to this whole P/E story. Because not only low P/E, stocks with a rising P/E can also fetch strong returns. In this regard, investors can bet on the likes of
AMC Entertainment, DocuSign, Vivid Seats, Lamb Weston and Fiverr International. 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, a stock'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 76 stocks:
AMC Entertainment: The Zacks Rank #2 operates as a theatrical exhibition company primarily in the United States and internationally. You can see . the complete list of today’s Zacks #1 Rank stocks here
The average earnings surprise of AMC for the past four quarters is 52.97%.
DocuSign: The Zacks Rank #2 company is a global provider of cloud-based software. The company’s DocuSign Agreement Cloud is a cloud software suite that automates and connects the entire agreement process.
The average earnings surprise of DOCU for the past four quarters is 27.1%.
Vivid Seats: Vivid Seats Inc. provides a marketplace, which utilizes its technology platform to connect buyers with ticket sellers. Vivid Seats Inc., formerly known as Horizon Acquisition Corporation, is based in Chicago.
The average earnings surprise of SEAT for the past four quarters is 114.58%.
Lamb Weston: This Zacks Rank #1 company is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries, and also provides a range of appetizers.
The average earnings surprise of LW for the past four quarters is 46.16%.
Fiverr International: This Zacks Rank #2 company provides an online marketplace for selling goods and services.
The average earnings surprise of FVRR for the past four quarters is 24.98%.
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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. 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/2190129/why-you-should-bet-on-5-top-ranked-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. Why Haven’t You Looked at Zacks' Top Stocks?
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