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Zacks.com featured highlights include Nexstar Media Group, Micron Technology, UBS Group and Gray Television

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For Immediate Release

Chicago, IL – September 22, 2017 - Stocks in this week’s article include Nexstar Media Group, Inc. (NXST - Free Report)  – Free Report), Micron Technology, Inc. (MU - Free Report)  – Free Report), UBS Group AG (UBS - Free Report)  – Free Report) and Gray Television, Inc. (GTN - Free Report)  – Free Report).

Screen of the Week of Zacks Investment Research:

4 High Earnings Yield Stocks to Enhance Your Portfolio

For smart investors who are willing to invest their money either in bonds or stocks, information on certain financial parameters is crucial. One such important parameter is earnings yield. It is the inverse of the price-to-earnings (P/E) ratio. This ratio is very useful in figuring out undervalued stocks. It can also come in handy while comparing stocks with the market or fixed income securities.

Earnings yield is calculated as (Annual Earnings per Share/Market Price) x 100. While comparing stocks coming from the same sector or industry, the one with higher earnings yield is likely to fetch better returns.


For comparing the performance of a market index with the 10-year Treasury yield, this ratio is very useful. When the yield of the market index is more than the 10-year Treasury yield, the stocks can be considered as undervalued in comparison to bonds. This indicates that investing in the stock market is a better option for a value investor.

Though Treasury-bill investments are risk free, investing in stocks always comes with a caveat. Hence, it is a good idea to add a risk premium to Treasury yield while comparing it with the earnings yield of a stock or the broader market.

The Winning Strategy

We have set Earnings Yield greater than 9% as our primary screening criterion, but it alone cannot be used for picking stocks that have the potential to generate solid returns. So, we have added the following parameters to the screen:

Estimated EPS growth for the next 12 months greater than or equal to the S&P 500: This metric compares the 12-month forward EPS estimate with the 12-month actual EPS.

Average Daily Volume (20 Day) greater than or equal to 100,000: High trading volume implies that a stock has adequate liquidity.

Current Price greater than or equal to $5.

Buy-Rated Stocks: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have been known to outperform peers in any type of market environment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Here are four of the 11 stocks that made it through the screen:

Irving, TX-based Nexstar Media Group, Inc. (NXSTFree Report) is a television broadcasting and digital media company in the United States. It has a Zacks Rank #1 and an expected EPS growth rate of 6.5% for the next 3–5 years.

Boise, ID-based Micron Technology, Inc. (MUFree Report) is a semiconductor systems provider. It has a Zacks Rank #1 and an expected EPS growth rate of 10% for the next 3–5 years.

Zurich, Switzerland-based UBS Group AG (UBSFree Report) is engaged in providing financial advice and solutions to clients worldwide. It has a Zacks Rank #2 and an expected EPS growth rate of 12.4% for the next 3–5 years.

Atlanta, GA-based Gray Television, Inc. (GTNFree Report) is a television broadcast company, which owns and operates television stations and digital assets in the United States. It has a Zacks Rank #2 and an expected EPS growth rate of 6.5% for the next 3–5 years.

You can get the rest of the stocks on this list by signing up now for a 2-week free trial to the Research Wizard stock picking and backtesting software. You can also create your own strategies and test them first before making investments.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

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.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.

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Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don’t wait for the market to get better before you decide to do better. Start learning how to be a better trader today: https://at.zacks.com/?id=111

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. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time!Click here for your free subscription to Profit from the Pros.

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Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: pr@zacks.com

Visit: https://www.zacks.com/performance

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/performancefor information about the performance numbers displayed in this press release.



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