There’s Reason For Concern Over Renishaw plc’s (LON:RSW) Massive 26% Price Jump
Renishaw plc (LON:RSW) shareholders are no doubt pleased to see that the share price has bounced 26% in the last month, although it is still struggling to make up recently lost ground. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 32% over that time.
Following the firm bounce in price, Renishaw may be sending bearish signals at the moment with its price-to-earnings (or “P/E”) ratio of 20.3x, since almost half of all companies in the United Kingdom have P/E ratios under 15x and even P/E’s lower than 9x are not unusual. However, the P/E might be high for a reason and it requires further investigation to determine if it’s justified.
We’ve discovered 2 warning…
