For Immediate Release
Chicago, IL – November 27, 2019 - Stocks in this week’s article are
Sonic Automotive, Inc. ( SAH Quick Quote SAH - Free Report) , Meritage Homes Corp. MTH, Lithia Motors LAD, Guess? GES and Marathon Petroleum Corp. MPC. 5 High Earnings Yield Stocks to Boost Your Portfolio
If you are in two minds about bonds or stocks, you might want to consider earnings yield as a key parameter. It is the reciprocal of the price-to-earnings (P/E) ratio. This ratio is quite effective for determining undervalued stocks. It is also useful for comparing stocks with the market or fixed-income securities.
Earnings yield can be calculated as (annual earnings per share/market price) x 100. While comparing similar stocks, the one with high earnings yield should fetch higher returns.
This ratio is effective for comparing the performance of the 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 said to be undervalued in comparison to bonds. This implies that investing in the stock market is a better option for a value investor.
However, while T-bills are free from risks, investing in stocks always carries its own share of perils. Hence, it will be wise to add a risk premium to the Treasury yield while comparing with the earnings yield of a stock or the broader market.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/641171/5-high-earnings-yield-stocks-to-boost-your-portfolio 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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Contact: Jim Giaquinto
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