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Zacks.com featured highlights AMC Entertainment, DocuSign, Vivid Seats, Lamb Weston and Fiverr International

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%.

You 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.

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.

Click here to sign up for a free trial to the Research Wizard today.

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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Contact: Jim Giaquinto

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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.

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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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Zacks Investment Research