For Immediate Release
Chicago, IL – April 12, 2018 - Stocks in this week’s article Pilgrim's Pride Corporation (PPC - Free Report) , Insight Enterprises Inc. (NSIT - Free Report) , Dorman Products Inc. (DORM - Free Report) , Chemours Company (CC - Free Report) and Crown Holdings Inc. (CCK - Free Report) .
Grab Market Momentum with 5 Top Rising Momentum Stocks
After a lot of hassles related to trade, Wall Street regained its momentum lately. Since we are about to enter the Q1 earnings season, investors probably have shifted their focus to earnings from geopolitics. And investors should note that corporate earnings in the United States have been in decent shape. So, invoke the fighter in you and be a brave investor right now.
While there are a lot of momentum plays around at this moment, investors can try out some rising P/E stocks too. 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.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/298717/grab-market-momentum-with-5-top-rising-pe-stocks
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