Read This Before You Buy Oconee Federal Financial Corp. (NASDAQ:OFED) Because Of Its P/E Ratio
Of late the Oconee Federal Financial (NASDAQ:OFED) share price has softened like an ice cream in the sun, melting a full . But plenty of shareholders will still be smiling, given that the stock is up 20% over the last quarter. Looking back further, the stock is up 7.0% in the last year.
Assuming no other changes, a sharply higher share price makes a stock less attractive to potential buyers. In the long term, share prices tend to follow earnings per share, but in the short term prices bounce around in response to short term factors (which are not always obvious). So some would prefer to hold off buying when there is a lot of optimism towards a stock. One way to gauge market expectations of a stock is to look at its Price to Earnings Ratio (PE Ratio). Investors have optimistic expectations ...