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5 Stocks with High ROE to Bet On as Oil Price Volatility Hits Markets
After a tumultuous past week, the broader equity markets witnessed an uptrend yesterday as oil prices cooled with the U.S. administration allowing Iranian oil tankers to pass safely through the Strait of Hormuz. Oil prices had earlier surged to record highs as traffic in the critical shipping route had halted since the war between Iran and Israel, backed by the United States, began. As tensions escalated and spread into the neighboring countries, crude oil prices soared to as high as $120 a barrel, sending shockwaves throughout global bourses. This forced the International Energy Agency to release one of the largest oil reserves to stem the oil price volatility.
President Trump has vowed to form a coalition of countries to escort ships through the Strait to rein in oil prices, propelling the stock markets from the doom and gloom. 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, such as return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. Ross Stores, Inc., Globe Life Inc., Broadcom Inc., Colgate-Palmolive Co. and TE Connectivity plc are some of the stocks with high ROE to profit from.
ROE: A Key Metric
ROE = Net Income/Shareholders' Equity
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify companies that diligently deploy cash for higher returns.
Moreover, ROE is often used to compare the profitability of a company with other firms in the industry; the higher, the better. It measures how well a company is multiplying its profits without investing new equity capital and portrays management's efficiency in rewarding shareholders with attractive risk-adjusted returns.
Here are five of the 11 stocks that qualified the screening:
Ross: Based in Dublin, CA, Ross is an off-price retailer of apparel and home accessories, offering in-season, branded and designer apparel, footwear, accessories and other home-related merchandise. Operating primarily in the United States, it targets middle-income households, keeping prices at generally 20% to 60% below the regular prices of most department and specialty stores.
The company has a long-term earnings growth expectation of 10% and delivered a trailing four-quarter earnings surprise of 6.2%, on average. Ross carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Globe Life: Based in McKinney, TX, Globe Life is a holding company for a group of insurance companies that primarily market individual life and supplemental health insurance to lower-middle to middle-income households throughout the United States. Globe Life's insurance subsidiaries write a variety of nonparticipating ordinary life insurance products, which include traditional whole life, term life and other life insurance.
It also offers Medicare Supplement and limited-benefit supplemental health insurance products that primarily include critical illness and accident plans. Globe Life carries a Zacks Rank #2.
Broadcom: Headquartered in San Jose, CA, Broadcom develops a broad range of semiconductor solutions for enterprise and data center networking and home connectivity. It also manufactures various semiconductor solutions for set-top boxes, telecommunication equipment, smartphones and base stations, as well as data center servers and storage systems, power generation and alternative energy systems, and electronic displays.
The company has a long-term earnings growth expectation of 48.6%. It delivered a trailing four-quarter earnings surprise of 1.9%, on average. Broadcom carries a Zacks Rank #2.
Colgate-Palmolive: New York City-based Colgate-Palmolive is a global leader in the oral care hygiene market. It produces and distributes household, healthcare and personal care products. The company sells its products in more than 200 countries around the world. Its business is tightly focused on four core categories — Oral Care, Personal Care, Pet Nutrition and Home Care.
The company has a long-term earnings growth expectation of 5.7%. It delivered a trailing four-quarter earnings surprise of 4%, on average. Colgate-Palmolive carries a Zacks Rank #2. It has a VGM Score of B.
TE Connectivity: Based in Galway, Ireland, TE Connectivity is a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries, including automotive, aerospace, defense, energy and medical. With operations in more than 130 countries, TE Connectivity focuses on emerging technologies such as 5G, electric vehicles, industrial automation and smart cities to position itself at the forefront of connectivity advancements.
The company has a long-term earnings growth expectation of 12%. It delivered a trailing four-quarter earnings surprise of 7.5%, on average. It has a VGM Score of B. TE Connectivity carries a Zacks Rank #2.
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
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
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Zacks.com featured highlights include Ross Stores, Globe Life, Broadcom, Colgate-Palmolive and TE Connectivity
For Immediate Release
Chicago, IL – March 18, 2026 – Stocks in this week’s article are Ross Stores, Inc. (ROST - Free Report) , Globe Life Inc. (GL - Free Report) , Broadcom Inc. (AVGO - Free Report) , Colgate-Palmolive Co. (CL - Free Report) and TE Connectivity plc (TEL - Free Report) .
5 Stocks with High ROE to Bet On as Oil Price Volatility Hits Markets
After a tumultuous past week, the broader equity markets witnessed an uptrend yesterday as oil prices cooled with the U.S. administration allowing Iranian oil tankers to pass safely through the Strait of Hormuz. Oil prices had earlier surged to record highs as traffic in the critical shipping route had halted since the war between Iran and Israel, backed by the United States, began. As tensions escalated and spread into the neighboring countries, crude oil prices soared to as high as $120 a barrel, sending shockwaves throughout global bourses. This forced the International Energy Agency to release one of the largest oil reserves to stem the oil price volatility.
President Trump has vowed to form a coalition of countries to escort ships through the Strait to rein in oil prices, propelling the stock markets from the doom and gloom. 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, such as return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. Ross Stores, Inc., Globe Life Inc., Broadcom Inc., Colgate-Palmolive Co. and TE Connectivity plc are some of the stocks with high ROE to profit from.
ROE: A Key Metric
ROE = Net Income/Shareholders' Equity
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify companies that diligently deploy cash for higher returns.
Moreover, ROE is often used to compare the profitability of a company with other firms in the industry; the higher, the better. It measures how well a company is multiplying its profits without investing new equity capital and portrays management's efficiency in rewarding shareholders with attractive risk-adjusted returns.
Here are five of the 11 stocks that qualified the screening:
Ross: Based in Dublin, CA, Ross is an off-price retailer of apparel and home accessories, offering in-season, branded and designer apparel, footwear, accessories and other home-related merchandise. Operating primarily in the United States, it targets middle-income households, keeping prices at generally 20% to 60% below the regular prices of most department and specialty stores.
The company has a long-term earnings growth expectation of 10% and delivered a trailing four-quarter earnings surprise of 6.2%, on average. Ross carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Globe Life: Based in McKinney, TX, Globe Life is a holding company for a group of insurance companies that primarily market individual life and supplemental health insurance to lower-middle to middle-income households throughout the United States. Globe Life's insurance subsidiaries write a variety of nonparticipating ordinary life insurance products, which include traditional whole life, term life and other life insurance.
It also offers Medicare Supplement and limited-benefit supplemental health insurance products that primarily include critical illness and accident plans. Globe Life carries a Zacks Rank #2.
Broadcom: Headquartered in San Jose, CA, Broadcom develops a broad range of semiconductor solutions for enterprise and data center networking and home connectivity. It also manufactures various semiconductor solutions for set-top boxes, telecommunication equipment, smartphones and base stations, as well as data center servers and storage systems, power generation and alternative energy systems, and electronic displays.
The company has a long-term earnings growth expectation of 48.6%. It delivered a trailing four-quarter earnings surprise of 1.9%, on average. Broadcom carries a Zacks Rank #2.
Colgate-Palmolive: New York City-based Colgate-Palmolive is a global leader in the oral care hygiene market. It produces and distributes household, healthcare and personal care products. The company sells its products in more than 200 countries around the world. Its business is tightly focused on four core categories — Oral Care, Personal Care, Pet Nutrition and Home Care.
The company has a long-term earnings growth expectation of 5.7%. It delivered a trailing four-quarter earnings surprise of 4%, on average. Colgate-Palmolive carries a Zacks Rank #2. It has a VGM Score of B.
TE Connectivity: Based in Galway, Ireland, TE Connectivity is a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries, including automotive, aerospace, defense, energy and medical. With operations in more than 130 countries, TE Connectivity focuses on emerging technologies such as 5G, electric vehicles, industrial automation and smart cities to position itself at the forefront of connectivity advancements.
The company has a long-term earnings growth expectation of 12%. It delivered a trailing four-quarter earnings surprise of 7.5%, on average. It has a VGM Score of B. TE Connectivity carries a Zacks Rank #2.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2885263/5-stocks-with-high-roe-to-bet-on-as-oil-price-volatility-hits-markets
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
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Visit: https://www.zacks.com/
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.