For Immediate Release
Chicago, IL – Feb 2, 2018 - Stocks in this week’s article include: Volkswagen AG (VLKAY - Free Report) , Tata Motors Limited (TTM - Free Report) , TRI Pointe Group, Inc. (TPH - Free Report) and Olympic Steel, Inc. (ZEUS - Free Report) .
Screen of the Week of Zacks Investment Research:
4 High Earnings Yield Stocks to Boost Your Portfolio
When you are unsure whether to keep your money in stocks or bonds, one key financial metric that can come to your rescue is earnings yield. It is the inverse of the price-to-earnings (P/E) ratio and very useful for spotting undervalued stocks. Also, the ratio comes in handy for investors when they want to compare stocks with the market or fixed income securities.
Earnings Yield can be calculated as (Annual Earnings per Share/Market Price) x 100. It is useful in comparing a stock with other stocks as well as with fixed income securities. While comparing similar stocks, the one which gives high earnings yield should provide better returns.
This ratio is also useful for comparing the performance of a market with the 10-year Treasury yield. When the yield of the market index is higher than the 10-year Treasury yield, stocks can be regarded as undervalued in comparison to bonds. This implies that investing in the stock market is a better choice for a value investor.
However, while T-bills are free of risks, investing in stocks always comes with a caveat. Hence, it would be an excellent idea to add a risk premium to the 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/290925/4-high-earnings-yield-stocks-to-boost-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
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Strong Stocks that Should Be in the News
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Contact: Jim Giaquinto
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