For Immediate Release
Chicago, IL – November 29, 2023 – Stocks in this week’s article are AMC Entertainment AMC, DocuSign DOCU, Vivid Seats SEAT, Lamb Weston LW and Fiverr International FVRR.
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%.
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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.
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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.
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Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
Lamb Weston (LW) : Free Stock Analysis Report
DocuSign (DOCU) : Free Stock Analysis Report
Fiverr International (FVRR) : Free Stock Analysis Report
Vivid Seats Inc. (SEAT) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
