Zacks.com Featured Highlights Include: Columbia Sportswear, American Woodmark, DICK'S Sporting, Alder And Leap

For Immediate Release

Chicago, IL – September 27, 2019 - Stocks in this week’s article are Columbia Sportswear Company (NASDAQ:COLM) , American Woodmark Corp. (NASDAQ:AMWD) , DICK'S Sporting Goods Inc. (NYSE:DKS) , Alder BioPharmaceuticals Inc. (NASDAQ:ALDR) and Leap Therapeutics Inc. (NASDAQ:LPTX) .

Use Rising P/E Strategy to Grab 5 Winning Stocks

A common investing technique is to hunt for stocks with a low price-to-earnings (P/E) ratio. That’s because this basic measure of how much investors are spending for $1 worth of earnings speaks of undervaluation. The logic is simple – a stock’s current market price does not justify its higher earnings and therefore leaves room for upside.

But have you ever given it a thought that stocks with a rising P/E can also be worth buying. We’ll tell you why.

Power of Increasing P/E

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, it means that he is willing to shell out $30 for only $1 worth of earnings. Now if the P/E ratio becomes 35 within a short spell of time, it means that the person is ready to pay $35 for only $1 worth of earnings. It shows that the investor 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.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/536581/use-rising-pe-strategy-to-grab-5-winning-stocks

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.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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