Published on 18 Apr 2023 on Simply Wall St. via Yahoo Finance

AGM Group Holdings Inc. (NASDAQ:AGMH) Shares Fly 28% But Investors Aren't Buying For Growth

AGM Group Holdings Inc. (NASDAQ:AGMH) shareholders have had their patience rewarded with a 28% share price jump in the last month. Unfortunately, despite the strong performance over the last month, the full year gain of 4.3% isn't as attractive.

Even after such a large jump in price, given about half the companies in the United States have price-to-earnings ratios (or "P/E's") above 15x, you may still consider AGM Group Holdings as a highly attractive investment with its 2.8x P/E ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.

For example, consider that AGM Group Holdings' financial performance has been pretty ordinary lately as earnings growth is non-existent. It might be that many expect the uninspiring earnings performance to worsen, which has repressed the P/E. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.