CT Automotive Group plc (LON:CTA) Stock Catapults 62% Though Its Price And Business Still Lag The Market
CT Automotive Group plc (LON:CTA) shareholders would be excited to see that the share price has had a great month, posting a 62% gain and recovering from prior weakness. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 35% over that time.
Although its price has surged higher, CT Automotive Group may still be sending very bullish signals at the moment with its price-to-earnings (or “P/E”) ratio of 4.5x, since almost half of all companies in the United Kingdom have P/E ratios greater than 17x and even P/E’s higher than 28x are not unusual. However, the P/E might be quite low for a reason and it requires further investigation to determine if it’s justified.
