For Immediate Release
Chicago, IL – April 16, 2018 - Stocks in this week’s article include: Microchip Technology Inc. (MCHP - Free Report) , AMC Networks Inc. (AMCX - Free Report) , LyondellBasell Industries N.V. (LYB - Free Report) , Applied Materials, Inc. (AMAT - Free Report) and Celanese Corporation (CE - Free Report) .
Screen of the Week of Zacks Investment Research:
Banks Lead Market Rebound as Syria Fears Recede: 5 ROE Picks
Investors have been on the edge since Trump hinted at possibilities of missile attacks on Syria. As tensions gradually eased with the U.S. President clarifying that attacks (if at all) were not imminent, the market took a breather with bank stocks leading the rebound on solid earnings expectations.
As investors employ a wait-and-see approach in a classic example of “backing and filling” in the market, they could benefit from ‘cash cow’ stocks that rake in higher returns.
However, singling out cash-rich stocks alone does not make for a solid investment proposition unless they are backed by attractive efficiency ratios like return on equity (ROE). A high ROE ensures that the company is reinvesting its cash at a high rate of return.
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 stocks 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.
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/299080/banks-lead-market-rebound-as-syria-fears-recede-5-roe-picks
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Strong Stocks that Should Be in the News
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