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Image: Bigstock featured highlights include: Seagate Technology, Best Buy, KLA, CBRE, and Rockwell Automation

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For Immediate Release

Chicago, IL – November 16, 2021 – Stocks in this week’s article are Seagate Technology Holdings PLC (STX - Free Report) , Best Buy Co., Inc. (BBY - Free Report) , KLA Corp. (KLAC - Free Report) , CBRE Group, Inc. (CBRE - Free Report) , and Rockwell Automation, Inc. (ROK - Free Report) .

5 High ROE Stocks to Buy as Inflation Snaps Winning Streak

The U.S. equity market lost its winning streak over the past week as inflation hit its highest point in more than 30 years, with the consumer price index up 6.2% year over year in October – the most since December 1990. The stock market rally, which was perhaps fueled by a healthy corporate earnings season and the Fed tapering decision amid the backdrop of an improving economy, was snapped by high prices of essential consumer items.

Although the inflationary pressure is widely viewed as temporary and largely induced by pandemic-specific issues, it continued to reverberate through markets and might force the Fed to kick start the tapering more quickly than it had signaled. Nevertheless, secular growth drivers are expected to fuel growth in the long term.  

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.

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Strong Stocks that Should Be in the News

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