For Immediate Release
Chicago, IL – November 23, 2021 – Stocks in this week’s article are JAKKS Pacific, Inc. (
JAKK Quick Quote JAKK - Free Report) , Party City Holdco Inc. ( PRTY Quick Quote PRTY - Free Report) , La-Z-Boy Inc. ( LZB Quick Quote LZB - Free Report) and Tempur Sealy International, Inc. ( TPX Quick Quote TPX - Free Report) . 4 Hot High Earnings Yield Picks to Pep Up Your Portfolio
Earnings Yield may be a simple yet effective metric to use for investors with exposure to stocks as well as bonds. The ratio is the inverse of the price-to-earnings (P/E) ratio, which is commonly applied to find undervalued stocks. However, when one looks to compare stocks with fixed income securities or the market, earnings yield is a more appropriate ratio.
Earnings Yield is measured as (Annual Earnings per Share/Market Price) x 100. While comparing similar stocks, the one with higher earnings yield is more likely to provide better returns, with other factors remaining constant.
Earnings Yield can be used to compare the performance of a market index with the 10-year Treasury yield. When the yield of the market index is more than the 10-year Treasury yield, stocks can be considered as undervalued in comparison to bonds and vice versa. In such a situation, for value investors, investing in the stock market may be a better option than the bond market.
However, it is important to remember that T-bills are risk free, while stock investments come with a caveat. It would be a good idea to add a risk premium to the Treasury yield while comparing it with 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/1830388/4-hot-high-earnings-yield-picks-to-pep-up-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. 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.
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