Stocks with a high P/E ratio are commonly referred to as ______ stocks.

Name: Stocks with a high P/E ratio are commonly referred to as ______ stocks.
Brand: Quizplus
Rating: 4.9 (58 reviews)

Question

Quizplus · Accepted Answer

Stocks with a high P/E ratio are commonly referred to as growth stocks because they are expected to have strong earnings growth in the future. High P/E ratios indicate investors are willing to pay a premium for the potential future earnings growth of the company.

Stocks with a High P/E Ratio Are Commonly Referred to as ______