Objective Corporation Limited’s (ASX:OCL) 25% Share Price Surge Not Quite Adding Up
Objective Corporation Limited (ASX:OCL) shares have had a really impressive month, gaining 25% after a shaky period beforehand. Looking back a bit further, it’s encouraging to see the stock is up 52% in the last year.
After such a large jump in price, given close to half the companies in Australia have price-to-earnings ratios (or “P/E’s”) below 17x, you may consider Objective as a stock to avoid entirely with its 55.5x P/E ratio. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s so lofty.
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Recent times have been advantageous for Objective as its earnings have been rising faster than…
