Betting on bargain stocks that have a low price-to-earnings (P/E) ratio is a convenient and common investment approach. The perception is that the lower the P/E, the higher is the value of the stock. This inference is drawn on the simple logic that a stock’s current market price does not justify (is not equivalent to) its higher earnings and therefore has room to run.
Naturally, there are very few investors who pay attention to stocks with an increasing P/E. But this often-overlooked trend can prove useful in finding great stocks. Let’s dig a little deeper.
Why Stocks with Rising P/E Can be Equally Hit
Investors should note that stock prices move in line with earnings performance. If earnings come in stronger, the price of a stock shoots up. Solid quarterly earnings and the forward guidance in turn boost earnings forecasts, leading to stronger demand for the stock and an uptrend in its price.
So, if share price is rising steadily, it means that investors are assured of the stock’s fundamental 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.
Best Low Price Stocks To Own For 2023: Apache Corporation(APA)
Apache Corporation, together with its subsidiaries, engages in the exploration, development, and production of natural gas, crude oil, and natural gas liquids. The company has exploration and production interests in the Gulf of Mexico, the Gulf Coast, east Texas, the Permian basin, the Anadarko basin, and the Western Sedimentary basin of Canada; and onshore Egypt, offshore Western Australia, offshore the United Kingdom in the North Sea, and onshore Argentina, as well as on the Chilean side of the island of Tierra del Fuego. Apache Corporation sells its natural gas to local distribution companies, utilities, end-users, integrated oil and gas companies, and marketers; and crude oil to integrated oil companies, marketing and transportation companies, and refiners. As of December 31, 2009, it had total estimated proved reserves of 1,067 million barrels of crude oil, condensate, and natural gas liquids, as well as 7.8 trillion cubic feet of natural gas. The company was founded in 1954 and is based in Houston, Texas.
Advisors’ Opinion:
- [By Motley Fool Transcribing]
Apache (NYSE:APA) Q4 2018 Earnings Conference CallFeb. 28, 2019 11:00 a.m. ET
Contents:
Prepared Remarks Questions and Answers Call Participants
Prepared Remarks:Operator
- [By Garrett Baldwin]
To see why we believe some of the richest players in the world are preparing for a market collapse, click here.
Stocks to Watch Today: WTW, CHK, BBY
Shares of Weight Watchers International Inc. (NASDAQ: WTW) cratered more than 30% after the company fell well short of earnings expectations after the bell and issued worse-than-expected 2019 guidance. The firm reported adjusted earnings of $0.46, a figure that missed expectations by $0.14. The firm also issued weak forward guidance. After yesterday’s slump, Oprah Winfrey’s stake in the company plunged by a whopping $48 million. Shares of Chesapeake Energy Corp. (NYSE: CHK) popped 10.2% after the natural gas producer reported earnings before the bell. Higher natural gas prices in the fourth quarter helped bolster the firm’s bottom line. Total natural gas sales jumped 37% in Q4 to $3.07 billion, well above analysts’ expectations of $2.28 billion. That strong natural gas revenue helped the firm report adjusted EPS of $0.49, which was a 49% jump year over year. Shares of Best Buy Co. Inc. (NYSE: BBY) popped 10% after the electronics retailer topped Wall Street earnings expectations before the bell. The firm’s profit of $2.72 topped consensus expectations by $0.15 per share. The firm cited stronger-than-expected same-store sales, hiked its dividend from $0.45 to $0.50, and issued a positive 2019 outlook. Today, look for more earnings reports from Apache Corp. (NYSE: APA), Box Inc. (NYSE: BOX), Campbell Soup Co. (NYSE: CPB), Dean Foods Co. (NYSE: DF), Fitbit Inc. (NYSE: FIT), HP Inc. (NYSE: HPQ), L Brands Inc. (NYSE: LB), Lowe’s Co. Inc. (NYSE: LOW), Office Depot Inc. (NYSE: ODP), and Square Inc. (NYSE: SQ).
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Best Low Price Stocks To Own For 2023: T2 Biosystems, Inc.(TTOO)
We are an in vitro diagnostics company that has developed an innovative and proprietary technology platform that offers a rapid, sensitive and simple alternative to existing diagnostic methodologies. We are using our T2 Magnetic Resonance platform, or T2MR, to develop a broad set of applications aimed at lowering mortality rates, improving patient outcomes and reducing the cost of healthcare by helping medical professionals make targeted treatment decisions earlier. T2MR enables rapid detection of pathogens, biomarkers and other abnormalities in a variety of unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum and urine, and can detect cellular targets at limits of detection as low as one colony forming unit per milliliter, or CFU/mL. Advisors’ Opinion:
- [By Shane Hupp]
ILLEGAL ACTIVITY WARNING: “T2 Biosystems (TTOO) Trading Up 5%” was originally published by Ticker Report and is owned by of Ticker Report. If you are accessing this story on another domain, it was stolen and reposted in violation of US and international trademark & copyright laws. The original version of this story can be read at www.tickerreport.com/banking-finance/4216638/t2-biosystems-ttoo-trading-up-5.html.
- [By Maxx Chatsko]
Shares of T2 Biosystems (NASDAQ:TTOO) jumped as much as 16% today after the integrated clinical diagnostics company released performance data for its next potential growth product. The T2Lyme Panel was developed to detect Lyme disease in just three to five hours. While time is an increasingly important consideration for diagnostic blood tests, accuracy remains king. The recent study hints that the T2Lyme Panel is the best in both metrics.
- [By Stephan Byrd]
T2 Biosystems (NASDAQ:TTOO) was downgraded by analysts at ValuEngine from a “buy” rating to a “hold” rating in a research note issued to investors on Thursday.
Best Low Price Stocks To Own For 2023: MiMedx Group, Inc(MDXG)
MiMedx Group, Inc. (MiMedx), incorporated on February 28, 2008, is an integrated developer, processor and marketer of regenerative biomaterial products and bioimplants processed from human amniotic membrane and other birth tissues and human skin and bone. The Company operates in the Regenerative Biomaterials business segment, which includes the development, processing and marketing of regenerative biomaterial products and bioimplants processed from human amniotic membrane and other birth tissues in the wound care, surgical, sports medicine, ophthalmic and dental market categories. Its biomaterial platform technologies are AmnioFix, EpiFix, OrthoFlo, Physio, AlloBurn, and CollaFix. AmnioFix and EpiFix are its tissue technologies processed from human amniotic membrane derived from donated placentas. Elected in advance of delivery through its donor program, a mother delivering a baby through scheduled full-term Caesarean section birth may donate the placenta in lieu of having it discarded as medical waste. The Company processes the human amniotic membrane utilizing its PURION Process, to produce an implant. MiMedx is the supplier of amniotic tissue, having supplied over 500,000 allografts.
The Company’s platforms include Physio, a bone grafting material consists of 100% bone tissue with no added carrier, a demineralized bone matrix (DBM) to complement its product portfolio offerings within the Orthopedic market and AlloBurn, a skin product for burns. CollaFix, its next technology platform, is its collagen fiber technology designed to mimic the natural composition, structure and mechanical properties of musculoskeletal tissues in order to augment their repair. Its CollaFix technology combines means of creating fibers from soluble collagen and a specialized cross-linking process. Its amniotic membrane products include its own brands, AmnioFix and EpiFix. The Company has various additional offerings in various stages of conceptualization and development. The Company operates a licensed tissue bank that is registered as a tissue establishment with the United States Food and Drug Administration (FDA). The Company partners with physicians and hospitals to recover donated placental tissue.
EpiFix
The Company’s EpiFix allograft is configured for external use. EpiFix is used for healing, as well as to modulate inflammation. The EpiFix platform is used to treat chronic wounds, including diabetic foot ulcers, venous stasis ulcers, arterial ulcers and pressure ulcers, burns and surgical wounds. The Company offers EpiFix in a sheet form, as well as a micronized powder form. The powder can be packed into wounds and is particularly useful for tunneling wounds. Some physicians also choose to mix the powder with saline to inject it into the wound bed and wound margins.
AmnioFix
The Company’s AmnioFix allografts are configured for internal use. Its AmnioFix product line consists of three main configurations: AmnioFix, AmnioFix Wrap and AmnioFix Injectable. AmnioFix is provided in a sheet form. AmnioFix is used to modulate inflammation and to minimize scar tissue formation. AmnioFix is used in spine, urology and general surgeries. AmnioFix Wrap also is supplied in a sheet form and is configured for the same purposes as AmnioFix, but is optimized for use as a wrap for nerves, tendons or ligaments. AmnioFix Injectable is supplied in micronized powder form used to reduce inflammation. AmnioFix Injectable is used to treat conditions, such as tendonitis, including plantar fasciitis, lateral epicondylitis, and medial epicondylitis, bursitis, strains and sprains.
Original equipment manufacturer (OEM) Products
The Company’s allografts for ophthalmic surgery and dental applications are sold on an OEM basis pursuant to agreements whereby the Company has granted third parties licenses to some of its technology for use in those fields in specified markets. The Company also sells products on a non-exclusive OEM basis to Medtronic for spinal procedures and Zimmer Biomet for spine and orthopedic procedures.
OrthoFlo
OrthoFlo is a human tissue allograft that is derived from amniotic fluid, donated by mothers delivering healthy babies by scheduled Caesarean section. It is for homologous use to protect and cushion, provide lubrication, and reduce inflammation. Amniotic fluid, in utero, naturally functions to protect, cushion and enhance mobility.
The Company competes with Organogenesis, Inc., Osiris Therapeutics, Inc. and Smith & Nephew.
Advisors’ Opinion:
- [By Cory Renauer]
Shares of MiMedx Group, Inc. (NASDAQ:MDXG), a biopharmaceutical company with a hand in the tissue repair market, rose 16.6% in September, according to data from S&P Global Market Intelligence. Investors are beginning to like the business again, following the unpaid departure of key executives and a reprieve from the Nasdaq exchange.
- [By Maxx Chatsko]
Shares of MiMedx Group (NASDAQ:MDXG) rose 24.7% in August, according to data provided by S&P Global Market Intelligence. The bump was delivered after the company reported updates related to its product portfolio, clinical drug pipeline, and ability to keep its stock listed on the Nasdaq exchange — for now, anyway. That collection of positive news outweighed a major insurer’s decision to no longer cover one of its key products.
- [By Dan Caplinger]
Thursday was a great day on Wall Street, as major benchmarks responded favorably to news that the U.S. and China would meet again to try to negotiate their differences on the trade front. The manufacturing-heavy Dow Jones Industrial Average fared the best out of the most-followed indexes, reflecting the key role that global trade plays in those companies’ opportunities for revenue growth and profit. Broader-based measures did well but weren’t able to keep up with the Dow in percentage terms. Still, some individual companies suffered from bad news that sent their shares lower. Dillard’s (NYSE:DDS), MiMedx Group (NASDAQ:MDXG), and Global Net Lease (NYSE:GNL) were among the worst performers on the day. Here’s why they did so poorly.
Best Low Price Stocks To Own For 2023: Forrester Research, Inc.(FORR)
Forrester Research, Inc. (“Forrester” or “the Company”) conducts independent research and provides pragmatic and forward-thinking advice to global leaders in business and technology. Forrester’s products and services are targeted to specific roles, including principally senior management, business strategists, and marketing and technology professionals at $1 billion-plus companies who collaborate with Forrester to align their technology investments with their business goals. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Forrester and its wholly-owned subsidiaries. All intercompany balances have been eliminated in consolidation. Advisors’ Opinion:
- [By Stephan Byrd]
Get a free copy of the Zacks research report on Forrester Research (FORR)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
- [By Shane Hupp]
Forrester Research (NASDAQ:FORR) was downgraded by stock analysts at BidaskClub from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday.
- [By Stephan Byrd]
ValuEngine upgraded shares of Forrester Research (NASDAQ:FORR) from a hold rating to a buy rating in a research note issued to investors on Monday.
Best Low Price Stocks To Own For 2023: Exelixis, Inc.(EXEL)
Exelixis, Inc. (“Exelixis,” “we,” “our” or “us”) is a biopharmaceutical company that discovers, develops and commercializes small molecule therapies for the treatment of cancer. Our business focuses predominantly on the development and commercialization of cabozantinib, an internally-discovered inhibitor of multiple receptor tyrosine kinases, in various tumor indications. Cabozantinib is currently approved in the United States and European Union for the treatment of progressive, metastatic medullary thyroid cancer, or MTC, and is marketed under the brand name COMETRIQ®. In the past year, we obtained positive clinical results from our phase 3 pivotal trial METEOR (Metastatic RCC Phase 3 Study Evaluating Cabozantinib vs. Everolimus), suggesting that cabozantinib also has the potential to make a meaningful difference in the lives of patients suffering from advanced renal cell carcinoma, or RCC, a serious form of cancer with a significantly larger patient population than MTC. Advisors’ Opinion:
- [By Josh Enomoto]
Still, for the astute contrarian, Takeda might deliver the goods. Currently, the company features a forward price-earnings (P/E) ratio of 10.5 times, rated lower than nearly 73% of its competitors. That seems a bit low, considering Takeda’s decent growth rate (based on free cash flow) and solid profitability metrics. TAK may be a thinking person’s idea for undervalued biotech stocks to buy.
Exelixis (EXEL) Source: Shutterstock.com
Based in Alameda, California, Exelixis (NASDAQ:EXEL) is a genomics-based drug discovery firm specializing in oncology therapeutics. It garnered fame for Cometriq, which received approval by the U.S. Food and Drug Administration (FDA) for the treatment of progressive, metastatic medullary thyroid cancer (MTC). Nevertheless, circumstances don’t bode well for Exelixis this year. Since the January opener, EXEL has shed nearly 10% of its market value.
- [By Joseph Griffin]
ILLEGAL ACTIVITY NOTICE: “Insider Selling: Exelixis, Inc. (EXEL) Director Sells 5,000 Shares of Stock” was reported by Ticker Report and is owned by of Ticker Report. If you are accessing this story on another site, it was stolen and republished in violation of U.S. and international trademark & copyright law. The original version of this story can be viewed at www.tickerreport.com/banking-finance/4224649/insider-selling-exelixis-inc-exel-director-sells-5000-shares-of-stock.html.
Best Low Price Stocks To Own For 2023: Piper Jaffray Companies(PJC)
Piper Jaffray Companies operates as an investment bank and asset management firm that serves corporations, private equity groups, public entities, non-profit entities, and institutional investors in the United States and internationally. The companys Capital Markets segment offers investment banking and institutional sales, trading, and research services for various equity and fixed income products. It raises capital through equity financings; provides advisory services relating to mergers and acquisitions, equity private placements, debt advisory, and municipal financial advisory services for corporate clients; underwrites debt issuances; and offers financial advisory, loan placement, and interest rate risk management services. This segment also provides public finance investment banking capabilities that focus on state and local governments, cultural and social service non-profit entities, healthcare, education, hospitality, senior living, and transportation sectors. In addition, it offers equity and fixed income advisory and trade execution services for institutional investors, and government and non-profit entities; and is involved in trading activities for customer facilitation and strategic trading purposes. Further, the Capital Markets segment engages in merchant banking activities, which comprise equity or debt investments in late stage private companies, and investments in private equity funds and other firm investments and has alternative asset management funds in merchant banking and senior living to invest firm capital, as well as to manage capital from outside investors. The Asset Management segment provides traditional asset management services with product offerings in equity securities and master limited partnerships to institutions and individuals through separately managed accounts, and open-end and closed-end funds. Piper Jaffray Companies was founded in 1895 and is headquartered in Minneapolis, Minnesota.
