The year 2016 saw a gloomy start plagued by several headwinds of last year’s global oil crisis. Investors are still skeptical about the current state of market affairs which is being dictated by the movement in crude prices. With Brent and WTI crude recently breaching the $50 per barrel mark, the market seems well poised for resurgence.

The Dow Jones Industrial Average (DJI) and the Standard & Poor’s 500 (S&P 500) has improved significantly from Feb 11,2016– when Dow plummeted to its lowest level since Feb 6, 2014 and the S&P 500 fell to its lowest level since Apr 11, 2014.  Since then, the Dow and the S&P 500 have improved 14.6% and 15.5%, respectively.

Under the present market setting, which is showing signs of revival, what should be the winning strategy?

Fundamentals to Consider Amid Recovery

The increasing market volatility makes the momentum strategy highly risky for investors, while value investing does not find many suitors in the current market scenario.

However, the story is different for high P/E stocks which are worth buying despite their high prices. Generally, when we are looking at the price-to-earnings (P/E) ratio, we would prefer to see a lower number for a company that we might invest in. That’s because it’s a basic measure of how much we are paying for $1 worth of earnings. However, the only hitch in this old school of investing is that P/E ratio hardly conveys a company’s future earnings growth.

Hence, under the existing circumstances, it remains crucial for investors to avoid chasing trends blindly. It is likely for certain companies to have high P/E ratios and not be a poor investment choice. Suppose, an investor thinks of buying a stock with a P/E ratio of 30. This means that he is willing to spend $30 for only $1 worth of earnings as he expects earnings of the company to grow at a faster pace in the future owing to strong fundamentals.

Therefore, we believe that a thorough analysis of the high-P/E company’s growth potential is vital to determine if the particular stock will turn out to be a good investment or not.

4 Stocks to Put Your Money

Headquartered in Atlanta, GA,EarthLink Holdings Corp. (ELNK -Snapshot Report) provides managed network, security, and cloud services to business and residential customers in the United States.

Of late, the company has been seeing an upward trend in earnings estimate revisions. Notably, over the past 30 days, the Zacks Consensus Estimate for 2016 earnings has increased 66.7% to 5 cents. Further, for full-year 2016, EPS is expected to soar 114.8%.

U.S. Auto Parts Network, Inc. (PRTS - Snapshot Report) operates as an online retailer of aftermarket auto parts and accessories primarily in the United States, Canada, and the Philippines.

Upward estimate revisions on the stock raise optimism about its growth prospects. The Zacks Consensus Estimate for 2016 has surged 100% to 4 cents over the last 30 days. Further, for full-year 2016, EPS is expected to grow a healthy 187.5%.

Headquartered in St. Louis, MO, Post Holdings, Inc. (POST - Snapshot Report) manufactures, markets, and sells branded and private label ready-to-eat cereal products primarily in the United States, Puerto Rico, Canada, Mexico, and the Caribbean.

Upward estimate revisions for 2016 earnings add to the optimism over the stock. The Zacks Consensus Estimate for 2016 EPS has scaled 17.1% to $2.26 over the last 30 days. Moreover, for full-year 2016 EPS is projected to grow 264.3%.

Globant S.A. (GLOB - Snapshot Report) develops software solutions in the United States, Europe, and Latin America. It serves medium to large-sized companies operating in media and entertainment, professional services, technology and telecommunications, travel and hospitality, banks, financial services and insurance, and consumer, and retail and manufacturing industries.

The company has been seeing an upward trend in earnings estimate revision. Notably, over the past 30 days, the Zacks Consensus Estimate for 2016 earnings has inched up 0.9% to $1.11. Further, for full-year 2016, EPS is expected to grow a solid 22%.