Volex plc’s (LON:VLX) 26% Price Boost Is Out Of Tune With Earnings
Despite an already strong run, Volex plc (LON:VLX) shares have been powering on, with a gain of 26% in the last thirty days. Unfortunately, despite the strong performance over the last month, the full year gain of 8.3% isn’t as attractive.
Since its price has surged higher, Volex may be sending bearish signals at the moment with its price-to-earnings (or “P/E”) ratio of 19.3x, since almost half of all companies in the United Kingdom have P/E ratios under 16x 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.
