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Zacks.com featured highlights include: LZB, SEM, UCTT, QFIN and BERY

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For Immediate Release

Chicago, IL – September 23, 2020 - Stocks in this week’s article are La-Z-Boy Inc. (LZB - Free Report) , Select Medical Holdings (SEM - Free Report) , Ultra Clean Holdings, Inc. (UCTT - Free Report) , 360 Finance, Inc. (QFIN - Free Report) and Berry Global Group, Inc. (BERY - Free Report) .

5 Must-Buy Stocks Offering High Earnings Yields

Earnings yield is a useful ratio for investors who have exposure to both stocks and bonds. This ratio gains an upper hand on the more commonly used P/E ratio as it facilitates comparison of stocks with fixed income securities. Interestingly, it is simply the inverse of the P/E ratio.

Earnings yield is calculated as (Annual Earnings per Share/Market Price) x 100. If other factors are constant while comparing stocks, the one with a higher earnings yield has the potential to provide comparatively greater returns.

Earnings yield can also be used to compare the performance of a market index with the 10-year Treasury yield. For instance, when the yield of the market index is more than the 10-year Treasury yield, stocks can be considered as undervalued than bonds. In this situation, investing in the stock market would be a better option for a value investor.

However, bearing in mind the risk-free nature of T-bills, it would be a good idea to add a risk premium to the Treasury yield while comparing it with the earnings yield of a stock or the stock market.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1061682/5-mustbuy-stocks-offering-high-earnings-yield

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

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Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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