Zacks.com Highlights: Asbury Automotive, OncoGenex Pharmaceuticals, ATyr Pharma, Avinger And Sunesis Pharmaceuticals
Zacks Investment Research | Nov 28, 2018 08:06PM ET
For Immediate Release
Chicago, IL – November 29, 2018 - Stocks in this week’s article include: Asbury Automotive Group Inc. (NYSE:ABG) , OncoGenex Pharmaceuticals Inc. (NASDAQ:ACHV) , aTyr Pharma Inc. (NASDAQ:LIFE) , Avinger Inc. (NASDAQ:AVGR) and Sunesis Pharmaceuticals Inc. (NASDAQ:SNSS) .
Screen of the Week of Zacks Investment Research:
5 Top-Ranked Rising P/E Stocks to Lure Investors
Investors are well aware of low P/E investing and its positives. The common investor perception is that the lower the P/E, the higher will be the value of the stock. This inference is drawn on the simple logic that a stock’s current market price does not justify (or is not equivalent to) its higher earnings and therefore has room to run.
Naturally, there are very few investors who pay attention to stocks with an increasing P/E. But this often-overlooked trend can prove useful in finding great stocks. Let’s dig a little deeper.
Why Stocks With Rising P/E Can be Equally Popular
Investors should note that stock prices move in line with earnings performance. If earnings come in stronger, the price of a stock shoots up. Solid quarterly earnings and the forward guidance in turn boost earnings forecasts, leading to stronger demand for the stock and an uptrend in its price.
So, if share 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.
And that's what we're screening for today…
For the rest of this Screen of the Week article please visit Zacks.com at: Zacks Investment Research
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