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Zacks.com featured highlights include: Summit Hotel Properties, Meritage Homes, Eagle Pharm and BrightSphere Investment Group
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For Immediate Release
Chicago, IL – December 27, 2021 – Stocks in this week’s article are Summit Hotel Properties, Inc. (INN - Free Report) , Meritage Homes Corporation (MTH - Free Report) , Eagle Pharmaceuticals, Inc. (EGRX - Free Report) and BrightSphere Investment Group plc (BSIG - Free Report) .
4 High Earnings Yield Stocks Likely to Pay Off Big-Time
The price-to-earnings (P/E) ratio is often used by investors to pick undervalued stocks. Yet, it is difficult to use the P/E ratio to compare stocks with fixed income securities. This is where the inverse strategy — Earnings Yield — comes in handy.
Earnings yield is calculated as (Annual Earnings per Share/Market Price) x 100. While comparing similar stocks, the one with higher earnings yield has the potential of providing comparatively greater returns. Summit Hotel Properties, Meritage Homes, Eagle Pharm and BrightSphere Investment Group could be some attractive bets if you are looking for high earnings yield picks.
The earnings yield parameter is often used to compare the performance of a market index with the 10-year Treasury yield. For instance, if the yield of the market index is more than the 10-year Treasury, stocks can be considered as undervalued in comparison to bonds. In such a case, investing in the stock market would be a better option for a value investor.
You need to keep in mind that T-bills are safe bets while stock investments always have an element of risk. Hence, it would be prudent to add a risk premium to the Treasury yield while comparing it with the earnings yield of a stock or the overall market.
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 >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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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Zacks.com featured highlights include: Summit Hotel Properties, Meritage Homes, Eagle Pharm and BrightSphere Investment Group
For Immediate Release
Chicago, IL – December 27, 2021 – Stocks in this week’s article are Summit Hotel Properties, Inc. (INN - Free Report) , Meritage Homes Corporation (MTH - Free Report) , Eagle Pharmaceuticals, Inc. (EGRX - Free Report) and BrightSphere Investment Group plc (BSIG - Free Report) .
4 High Earnings Yield Stocks Likely to Pay Off Big-Time
The price-to-earnings (P/E) ratio is often used by investors to pick undervalued stocks. Yet, it is difficult to use the P/E ratio to compare stocks with fixed income securities. This is where the inverse strategy — Earnings Yield — comes in handy.
Earnings yield is calculated as (Annual Earnings per Share/Market Price) x 100. While comparing similar stocks, the one with higher earnings yield has the potential of providing comparatively greater returns. Summit Hotel Properties, Meritage Homes, Eagle Pharm and BrightSphere Investment Group could be some attractive bets if you are looking for high earnings yield picks.
The earnings yield parameter is often used to compare the performance of a market index with the 10-year Treasury yield. For instance, if the yield of the market index is more than the 10-year Treasury, stocks can be considered as undervalued in comparison to bonds. In such a case, investing in the stock market would be a better option for a value investor.
You need to keep in mind that T-bills are safe bets while stock investments always have an element of risk. Hence, it would be prudent to add a risk premium to the Treasury yield while comparing it with the earnings yield of a stock or the overall market.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1842794/4-high-earnings-yield-stocks-likely-to-pay-off-big-time
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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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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.