For Immediate Release
Chicago, IL – July 12, 2019 - Stocks in this week’s article are Stryker Corp. (SYK - Free Report) , T. Rowe Price Group, Inc. (TROW - Free Report) , Applied Materials, Inc. (AMAT - Free Report) , Fiat Chrysler Automobiles N.V. (FCAU - Free Report) and Northrop Grumman Corp. (NOC - Free Report) .
5 ROE Stocks to Profit as Fed-Fueled Rate Cut Hopes Soar
The U.S. equity markets gained momentum yesterday as leading benchmark indices hit record high on expectations of a Fed rate cut as early as this month. Despite the resumption of U.S.-China trade talks and a strong June jobs report, slower business investment and low inflation rates were cited as the primary reasons for Fed’s accommodative monetary policy. This, in turn, keeps intact broad-based Wall Street expectations of around three interest rate cuts this year.
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, singling out cash-rich stocks alone does not make for a solid investment proposition unless these 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.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/440906/5-roe-stocks-to-profit-as-fedfueled-rate-cut-hopes-soar
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