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 Watch Right Now: Anavex Life Sciences Corp.(AVXL)
Anavex Life Sciences Corp., a clinical stage biopharmaceutical company, engages in the development of drug candidates for the treatment of Alzheimers disease, other central nervous system diseases, pain, and various cancers. The companys lead drug candidates include ANAVEX 2-73 and ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil, which is in a Phase 2a clinical trial for the treatment of Alzheimers and other central nervous system diseases. Its preclinical drug candidates include ANAVEX 3-71, which uses ligands that activate sigma-1 receptors to treat Alzheimers disease; ANAVEX 1-41, a sigma-1 agonist that protects nerve cells from degeneration or death; and ANAVEX 1037 for the treatment of prostate cancer. The company was founded in 2006 and is based in New York, New York.
- [By Joseph Griffin]
Anavex Life Sciences (NASDAQ:AVXL) and Icon (NASDAQ:ICLR) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.
- [By Joseph Griffin]
News coverage about Anavex Life Sciences (NASDAQ:AVXL) has been trending somewhat positive on Wednesday, according to Accern. The research firm identifies positive and negative media coverage by reviewing more than twenty million blog and news sources in real-time. Accern ranks coverage of public companies on a scale of negative one to one, with scores nearest to one being the most favorable. Anavex Life Sciences earned a daily sentiment score of 0.16 on Accern’s scale. Accern also assigned headlines about the biotechnology company an impact score of 46.5362495493017 out of 100, meaning that recent media coverage is somewhat unlikely to have an effect on the stock’s share price in the next several days.
- [By Shane Hupp]
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- [By Stephan Byrd]
Schwab Charles Investment Management Inc. lifted its stake in Anavex Life Sciences Corp (NASDAQ:AVXL) by 48.8% during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 76,200 shares of the biotechnology company’s stock after purchasing an additional 25,000 shares during the period. Schwab Charles Investment Management Inc.’s holdings in Anavex Life Sciences were worth $211,000 at the end of the most recent quarter.
Best Low Price Stocks To Watch Right Now: AcelRx Pharmaceuticals Inc.(ACRX)
AcelRx Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of therapies for the treatment of acute and breakthrough pain in the United States. The company develops ARX-01, a Sufentanil NanoTab PCA system, which completed Phase II clinical trial for acute post-operative pain. The Sufentanil NanoTab PCA system consists of sufentanil, a high therapeutic index opioid; NanoTabs, a non-invasive sublingual dosage form; and a handheld PCA device that enables simple patient-controlled delivery of NanoTabs in the hospital setting and eliminates the risk of programming errors. Its products also include ARX-02, a Sufentanil NanoTab BTP Management System that completed Phase II clinical trial for the treatment of cancer breakthrough pain; and ARX-03, a Sufentanil/Triazolam NanoTab, which completed Phase II clinical trial to provide mild sedation, anxiety reduction, and pain relief for patients undergoing painful procedures in a ph ysician?s office. The company was formerly known as SuRx, Inc. and changed its name to AcelRx Pharmaceuticals, Inc. in August 2006. AcelRx Pharmaceuticals, Inc. was founded in 2005 and is headquartered in Redwood, California.
- [By Keith Speights]
Shares of AcelRx Pharmaceuticals (NASDAQ:ACRX) were sinking by 11.3% as of 10:47 a.m. EST on Friday. The specialty pharmaceutical company announced its fourth-quarter and full-year 2018 results after the market closed on Thursday.
- [By Shane Hupp]
TRADEMARK VIOLATION WARNING: “AcelRx Pharmaceuticals (ACRX) Releases Earnings Results, Beats Expectations By $0.05 EPS” was first published by Ticker Report and is the property of of Ticker Report. If you are accessing this article on another site, it was copied illegally and republished in violation of U.S. and international trademark and copyright law. The correct version of this article can be viewed at www.tickerreport.com/banking-finance/4206297/acelrx-pharmaceuticals-acrx-releases-earnings-results-beats-expectations-by-0-05-eps.html.
- [By George Budwell, Chuck Saletta, and Todd Campbell]
Armed with this insight, we asked three of our Motley Fool contributors which top small-cap stocks have their attention right now. They named AcelRx Pharmaceuticals (NASDAQ:ACRX),Realogy Holdings (NYSE:RLGY), andRegenxbio Inc. (NASDAQ:RGNX). Read on to find out why.
Best Low Price Stocks To Watch Right Now: Amtech Systems Inc.(ASYS)
Amtech Systems, Inc., through its subsidiaries, engages in the design, assembly, sale, and installation of capital equipment and related consumables used in the manufacture of wafers, primarily for the solar and semiconductor industries. The company produces and sells horizontal diffusion furnaces used for various steps in the solar and semiconductor manufacturing processes, including diffusion, phosphorus tetrachloride doping, boron tribromide, low-pressure chemical vapor deposition, oxidation, and annealing; solar automation equipment, including mass wafer transfer systems, sorters, long-boat transfer systems, load station elevators, buffers, and conveyers; phosphorus silicate glass dry etch process equipment; plasma-enhanced chemical vapor deposition products, which applies an anti-reflective coating to solar wafers; semiconductor automation products; and small batch vertical furnaces. It also offers thermal processing systems, including related automation, parts, and s ervices to the solar/photovoltaic, semiconductor, silicon wafer, and microelectromechanical industries. In addition, the company manufactures and supplies polishing supplies that comprise wafer carriers, polishing templates, and double-sided polishing and lapping machines to the fabricators of light emitting diodes, optics, quartz, ceramics, and metal parts, as well as to manufacturers of medical equipment components and computer hard disks under the PR Hoffman brand name. Amtech Systems, Inc. markets its products primarily through sales personnel, as well as through a network of domestic and international independent sales representatives and distributors primarily in China, Taiwan, the United States, and Europe. The company was formerly known as Quartz Engineering & Materials, Inc. and changed its name to Amtech Systems, Inc. in 1987. Amtech Systems, Inc. was founded in 1981 and is based in Tempe, Arizona.
- [By Stephan Byrd]
SUMITOMO HEAVY/ADR (NASDAQ: ASYS) and Amtech Systems (NASDAQ:ASYS) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.
- [By Stephan Byrd]
Brooks Automation (NASDAQ: BRKS) and Amtech Systems (NASDAQ:ASYS) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.