What Napco Security Technologies, Inc.’s (NASDAQ:NSSC) 26% Share Price Gain Is Not Telling You
Despite an already strong run, Napco Security Technologies, Inc. (NASDAQ:NSSC) shares have been powering on, with a gain of 26% in the last thirty days. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 18% in the last twelve months.
After such a large jump in price, Napco Security Technologies may be sending very bearish signals at the moment with a price-to-earnings (or “P/E”) ratio of 31.3x, since almost half of all companies in the United States have P/E ratios under 19x and even P/E’s lower than 11x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
