For Immediate Release
Chicago, IL – November 14, 2017 - Stocks in this week’s article include: Chemours Company (CC - Free Report) , POSCO (PKX - Free Report) , Ecopetrol S.A. (EC - Free Report) and Micron Technology, Inc. (MU - Free Report) .
Screen of the Week of Zacks Investment Research:
4 High Earnings Yield Stocks to Improve Your Portfolio
The importance of financial parameters in making prudent investing decision is undeniable. When you are not able to decide whether to invest in stocks or bonds, you can take the help of some key financial metrics. One such metric, which assists investors in making correct decisions, is earnings yield. It is the reciprocal of the price-to-earnings (P/E) ratio. In fact, this ratio is very useful for tracking undervalued stocks. It also comes in handy for comparing stocks with the market or fixed income securities.
Earnings yield can be computed as (Annual Earnings per Share/Market Price) x 100. This is used for comparing stocks from the same sector or industry. The stock with higher earnings yield is likely to produce better returns.
For the purpose of comparing the performance of a market index with the 10-year Treasury yield, this ratio is also very useful. When the yield of the market index is higher than the 10-year Treasury yield, the stocks can be considered as undervalued in comparison to bonds. This gives an indication that investing in the stock market is a better option for a value investor.
Investment in Treasury-bill is not fraught with risks. However, 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.
And that's what we're screening for today…
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/282635/4-high-earnings-yield-stocks-to-improve-your-portfolio
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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.
Strong Stocks that Should Be in the News
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