Nova Ltd.’s (NASDAQ:NVMI) 27% Share Price Surge Not Quite Adding Up
Nova Ltd. (NASDAQ:NVMI) shareholders have had their patience rewarded with a 27% share price jump in the last month. Looking back a bit further, it’s encouraging to see the stock is up 70% in the last year.
Following the firm bounce in price, given close to half the companies in the United States have price-to-earnings ratios (or “P/E’s”) below 18x, you may consider Nova as a stock to avoid entirely with its 41.5x P/E ratio. However, the P/E might be quite high for a reason and it requires further investigation to determine if it’s justified.
Nova certainly has been doing a good job lately as it’s been growing earnings more than most other companies. The P/E is probably high because investors think this strong earnings…
