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Zacks.com featured highlights include: Lockheed Martin, Celanese, Virtu Financial, Polaris and T. Rowe Price

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For Immediate Release

Chicago, IL – April 19, 2021 – Stocks in this week’s article are Lockheed Martin Corporation (LMT - Free Report) , Celanese Corporation (CE - Free Report) , Virtu Financial, Inc. (VIRT - Free Report) , Polaris Inc. (PII - Free Report) and T. Rowe Price Group, Inc. (TROW - Free Report) .

5 ROE Picks as Markets Hit Top Gear on Solid Earnings Start

The U.S. equity markets are currently trading in the vicinity of record highs buoyed by solid earnings performance of hitherto reported companies and falling bond yields. Notably, the benchmark 10-year Treasury yield fell below 1.6% as investors appeared to factor in the Fed’s assurances of maintaining an accommodative monetary policy and reposed faith in the stock market.

A strong rebound in March U.S. retail sales further acted as a catalyst to the uptrend, with additional stimulus checks helping Americans to open up their purse strings for higher purchases. An improved job market scenario with jobless claims falling to a one-year low of 576,000 also contributed to the equity market upswing.

As investors employ a wait-and-see approach in a classic example of “backing and filling” in the market, they can benefit from ‘cash cow’ stocks that garner higher returns. However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios like return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return.

Why ROE?

ROE = Net Income/Shareholders’ Equity

ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify companies that diligently deploy cash for higher returns.

Moreover, ROE is often used to compare the profitability of a company with other firms in the industry — the higher, the better. It measures how well a company is multiplying its profits without investing new equity capital and portrays management’s efficiency in rewarding shareholders with attractive risk-adjusted returns.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1404885/5-roe-picks-as-markets-hit-top-gear-with-solid-earnings-start

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.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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