For Immediate Release
Chicago, IL – June 29, 2021 – Stocks in this week’s article are Macy's, Inc. (
M Quick Quote M - Free Report) , Adient plc ( ADNT Quick Quote ADNT - Free Report) , Imperial Oil Ltd. ( IMO Quick Quote IMO - Free Report) , Ryder System, Inc. ( R Quick Quote R - Free Report) and The Chemours Company ( CC Quick Quote CC - Free Report) . 5 Top-Ranked Stocks Displaying High Earnings Yield
Investors always look for stocks that have good return prospects. As a result, stocks backed by strong earnings potential are preferred, as an impressive earnings report tends to augment a stock's price. In this regard, earnings yield is a very useful tool for investors looking for stocks coming with the promise of comparatively better earnings.
Simply put, earnings yield is the inverse of the price-to-earnings (P/E) ratio. In addition to comparing a stock with others, it can be used to compare a stock with fixed income securities.
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.
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, keeping 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/1755048/5-top-ranked-stocks-displaying-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. About Screen of the Week
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