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Zacks.com featured highlights include: Chemours, Volkswagen, Micron and Meritage

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For Immediate Release

Chicago, IL – March 22, 2018 - Stocks in this week’s article The Chemours Company (CC - Free Report) , Volkswagen AG , Micron Technology, Inc. (MU - Free Report)  and Meritage Homes Corporation (MTH - Free Report) .

4 High Earnings Yield Stocks to Boost Your Portfolio

If you are unsure about whether to invest your money in stocks or bonds, one important financial parameter that can show you the right direction is earnings yield. It is the inverse of the price-to-earnings (P/E) ratio and can be used for identifying undervalued stocks. In addition to this, the ratio is also very useful for comparing stocks with the market or fixed income securities.

Earnings Yield can be calculated as (Annual Earnings per Share/Market Price) x 100. While comparing similar stocks, the one which gives high earnings yield should provide better returns.

This ratio also comes in handy for comparing the performance of a market with the 10-year Treasury yield. When the yield of the market index exceeds the 10-year Treasury yield, stocks can be regarded as undervalued in comparison to bonds. This implies that investing in the stock market is a better choice for a value investor.

However, while T-bills are free of risks, investing in stocks always comes with a caveat. Hence, it would be wise to add a risk premium to the Treasury yield while making comparison with the earnings yield of a stock or the broader market.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/296364/4-high-earnings-yield-stocks-to-boost-your-portfolio

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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Micron Technology, Inc. (MU) - free report >>

Meritage Homes Corporation (MTH) - free report >>

The Chemours Company (CC) - free report >>