Bet on 5 Top-Ranked Stocks With Rising P/E

Zacks11-07

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 is, the higher the ...

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This strategy is based on the notion that the lower the P/E ratio is, the higher the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/bet-5-top-ranked-stocks-104000006.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Bet on 5 Top-Ranked Stocks With Rising P/E</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBet on 5 Top-Ranked Stocks With Rising P/E\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-07 18:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/bet-5-top-ranked-stocks-104000006.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>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 is, the higher the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/bet-5-top-ranked-stocks-104000006.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4187","symbol_name":"航天航空与国防","start_time":0,"source_url":"https://finance.yahoo.com/news/bet-5-top-ranked-stocks-104000006.html","article_id":"2481816909","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/mxvMeKE6qpryXHeN.Zm2AQ--~B/aD00NDU7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/c20ecee8a1c57774ad032239e7057088"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481816909","pubTimestamp":1730976000,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"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 is, 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 American Eagle Outfitters AEO, Groupon GRPN, Nextracker Inc. NXT, ESS Tech GWH and Virgin Galactic SPCE.The concept isthat 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.Percentage price change for four weeks rela","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4187":"航天航空与国防","SPXU":"三倍做空标普500ETF","AEO":"美鹰服饰","NXT":"NEXTracker Inc","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","SPY":"标普500ETF","SSO":"两倍做多标普500ETF","LU0823414551.USD":"BNP PARIBAS ENERGY TRANSITION \"C\" (USD) INC","BK4220":"综合零售","OEF":"标普100指数ETF-iShares","VOO":"Vanguard标普500ETF","BK4559":"巴菲特持仓","BK4550":"红杉资本持仓","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","IVV":"标普500指数ETF","BK4588":"碎股","GWH":"ESS Tech Inc.","LU2357125470.USD":"BNP PARIBAS ENERGY TRANSITION \"CLASSIC RH\" (USDHDG) ACC","LU2506951792.HKD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (HKDHDG)       ACC","SPCE":"维珍银河","BK4122":"互联网与直销零售",".SPX":"S&P 500 Index","OEX":"标普100","BK4094":"服装零售","SDS":"两倍做空标普500ETF","LU2294711713.HKD":"BNP PARIBAS ENERGY TRANSITION \"C\" (HKD) ACC","LU0823414478.USD":"法巴经典能源转换基金","GRPN":"GroupOn","UPRO":"三倍做多标普500ETF","BK4581":"高盛持仓","BK4596":"哈里斯概念","BK4096":"电气部件与设备","BK4504":"桥水持仓","BK4562":"SPAC上市公司","SH":"标普500反向ETF","BK4564":"太空概念"},"translate_title":"押注5只市盈率上升的顶级股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SPCE":1,"NXT":1,"GWH":1,"GRPN":1,"VOO":0.9,"SPY":0.9,"AEO":0.9,".SPX":0.6,"UPRO":0.6,"SSO":0.6,"SPXU":0.6,"SH":0.6,"SDS":0.6,"OEX":0.6,"OEF":0.6,"IVV":0.6,"ESmain":0.6},"content_text":"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 is, 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.\nBut 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 American Eagle Outfitters AEO, Groupon GRPN, Nextracker Inc. NXT, ESS Tech GWH and Virgin Galactic SPCE.\nRising P/E: A Useful Tool\nThe 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.\nSuppose 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.\nSo, 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.\nAlso, 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.\nThe Winning Strategy\nIn order to shortlist stocks that are exhibiting an increasing P/E, we chose the following as our primary screening parameters.\nEPS growth estimate for the current year is greater than or equal to last year’s actual growth\nPercentage change in last year EPS should be greater than or equal zero\n(These two criteria point to flat earnings or a growth trend over the years.)\nPercentage change in price over four weeks greater than the percentage change in price over 12 weeks\nPercentage change in price over 12 weeks greater than percentage change in price over 24 weeks\n(These two criteria show that price of the stock is increasing consistently over the said timeframes.)\nPercentage price change for four weeks relative to the S&P 500 greater than the percentage price change for 12 weeks relative to the S&P 500\nPercentage price change for 12 weeks relative to the S&P 500 greater than the percentage price change for 24 weeks relative to the S&P 500\n(Here, the case for consistent price gains gets even stronger as it displays percentage price changes relative to the S&P 500.)\nPercentage price change for 12 weeks is 20% higher than or equal to the percentage price change for 24 weeks, but it should not exceed 100%\n(A 20% increase in the price of a stock from the breakout point gives cues of an impending uptrend. But a jump of over 100% indicates that there is limited scope for further upside and that the stock might be due for a reversal.)\nIn addition, we place a few other criteria that lead us to some likely outperformers.\nZacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) can get through.\nAverage 20-day Volume greater than or equal to 50,000: High trading volume implies that the stocks have adequate liquidity.\nThese few criteria have narrowed down the universe from over 7,700 stocks to just 35.\nHere are five out of the 35 stocks:\nAmerican Eagle Outfitters: The Zacks Rank #2  company is a specialty retailer of casual apparel, accessories and footwear for men and women aged 15-25 years. You can see the complete list of today’s Zacks #1 Rank stocks here.\nThe average four-quarter earnings surprise of AEO is 12.04%.\nGroupon: The Zacks Rank #2 company offers a marketplace that connects consumers to merchants. The company offers deals through its mobile application and website — groupon.com — in three primary categories: Local, Goods and Travel.\nThe average four-quarter earnings surprise of GRPN is 107.77%.\nNextracker: The Zacks Rank #2 company is a provider of intelligent, integrated solar tracker and software solutions used in utility-scale and distributed generation solar power plants.\nThe average four-quarter earnings surprise of NXT is 62.78%.\nESS Tech: The Zacks Rank #2 company designs, builds and deploys iron flow batteries for long-duration commercial and utility-scale energy storage applications.\nThe average four-quarter earnings surprise of GWH is 17.86%.\nVirgin Galactic: The Zacks Rank #2 company is a vertically integrated aerospace company pioneering human spaceflight for private individuals and researchers.\nThe average four-quarter earnings surprise of SPCE is 18.28%.\nYou 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.\nThe 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.\nClick here to sign up for a free trial to the Research Wizard today.\nDisclosure: 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.\nDisclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nAmerican Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report\nGroupon, Inc. (GRPN) : Free Stock Analysis Report\nVirgin Galactic Holdings, Inc. (SPCE) : Free Stock Analysis Report\nESS Tech, Inc. (GWH) : Free Stock Analysis Report\nNextracker Inc. (NXT) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481816909"}