Published on 15 Feb 2024 on Zacks via Yahoo Finance
Why You Should Bet on 5 Top-Ranked 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 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 Chewy CHWY, Cedar Fair FUN, NiSource NI, LTC Properties LTC and John Bean Technologies JBT.
Rising P/E: A Useful Tool