Zacks.com featured highlights include Carter's, Target Hospitality, iQIYI, The Buckle, and Corbus Pharmaceuticals

For Immediate Release

Chicago, IL – March 18, 2022 – Stocks in this week’s article are Carter's CRI, Target Hospitality TH, iQIYI IQ, The Buckle BKE, and Corbus Pharmaceuticals CRBP.

Ride on Rising P/E Investing with These 5 Top-Ranked Stocks

Generally, investors love stocks with a low price-to-earnings (P/E) ratio. The perception is that the lower the P/E, the higher will be the value of the stock. 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 is behind investors' inclination toward low P/E stocks.

But stocks with a rising P/E can be equally worth buying. We'll tell you why.

Why Rising P/E a Valuable Tool?

Investors should note that stock price moves in tandem with earnings performance. If earnings come in stronger, the price of a stock shoots up. Solid quarterly earnings and the forward guidance boost earnings forecasts, leading to stronger demand for the stock and an uptrend in its price.

So, if the price is rising steadily, it means that investors are assured of the stock's fundamental strength and expect some strong positives out of it. 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. This is because the investor expects earnings of the company to rise at a faster pace in the future on the back of strong fundamentals.

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 43 stocks:

Carter's: Zacks Rank #2 Carter's is the largest marketer of branded apparel and related products for babies, and young children in North America. You can see the complete list of today's Zacks #1 Rank stocks here.

The earnings surprise of CRI for the past four quarters is 198.87%.

Target Hospitality : Target Hospitality Corp. is the holding company for Target Lodging, Signor Lodging and their respective subsidiaries. The Zacks Rank #2 company through Target Lodging and Signor Lodging, builds, owns and operates customized housing communities for hospitality solutions including culinary, catering, concierge, laundry and security services as well as recreational facilities.

The earnings surprise of TH for the past four quarters is 61.11%.

iQIYI : Zacks Rank #2 iQIYI provides online entertainment service. The company offers movies, television dramas, variety shows and other video content.

Though the earnings surprise of IQ for the past four quarters is negative 9.21%, the company is likely to report a 28% uptick in earnings.

The Buckle : The Zacks Rank #1 company is a leading retailer of medium to better-priced casual apparel, footwear, and accessories for fashion-conscious young men and women.

The earnings surprise of BKE for the past four quarters is 45.0%.

Corbus Pharmaceuticals : This is a phase 3 clinical-stage pharmaceutical company focused on the development and commercialization of novel therapeutics to treat rare, chronic, and serious inflammatory and fibrotic diseases. CRBP carries a Zacks Rank #2.

The earnings surprise of CRBP for the past four quarters is 23.1%.

For the rest of this Screen of the Week article please visit Zacks.com at:

https://www.zacks.com/stock/news/1883559/ride-on-rising-pe-investing-with-these-5-top-ranked-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.

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Strong Stocks that Should Be in the News

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Buckle, Inc. The (BKE) : Free Stock Analysis Report
 
Carter's, Inc. (CRI) : Free Stock Analysis Report
 
Corbus Pharmaceuticals Holdings, Inc. (CRBP) : Free Stock Analysis Report
 
iQIYI, Inc. Sponsored ADR (IQ) : Free Stock Analysis Report
 
Target Hospitality Corp. (TH) : Free Stock Analysis Report
 
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