2 High-P/E Stocks to Consider Buying Now
The price-to-earnings ratio is perhaps the most common valuation metric used to evaluate stocks. It's also easy to calculate: Simply take the stock's current price and divide it by its annual earnings per share.
While the P/E ratio is a popular and useful metric, it doesn't tell the entire story of a stock's valuation all by itself. There are low-P/E stocks that investors should avoid like the plague. And there are high-P/E stocks that could turn out to be long-term bargains. Here's why high-P/E stocks can sometimes be smart investments, and two examples of stocks with relatively high P/E ratios that look attractive right now.
These two payment-processing stocks may look expensive, but have lots of potential to grow. Image Source: Getty Images.
Source: Fool.com
Square Inc. Stock
Our community is currently high on Square Inc. with 5 Buy predictions and 0 Sell predictions.
With a target price of 87 € there is a positive potential of 32.4% for Square Inc. compared to the current price of 65.71 €.
