U.S. Markets closed
  • S&P 500

    3,768.25
    -27.29 (-0.72%)
     
  • Dow 30

    30,814.26
    -177.24 (-0.57%)
     
  • Nasdaq

    12,998.50
    -114.10 (-0.87%)
     
  • Russell 2000

    2,123.20
    -32.15 (-1.49%)
     
  • Crude Oil

    52.04
    -1.53 (-2.86%)
     
  • Gold

    1,827.70
    -23.70 (-1.28%)
     
  • Silver

    24.83
    -0.97 (-3.77%)
     
  • EUR/USD

    1.2085
    -0.0079 (-0.6526%)
     
  • 10-Yr Bond

    1.0970
    -0.0320 (-2.83%)
     
  • Vix

    24.34
    +1.09 (+4.69%)
     
  • GBP/USD

    1.3583
    -0.0057 (-0.4143%)
     
  • USD/JPY

    103.8000
    -0.0420 (-0.0404%)
     
  • BTC-USD

    36,314.52
    +533.35 (+1.49%)
     
  • CMC Crypto 200

    701.93
    -33.21 (-4.52%)
     
  • FTSE 100

    6,735.71
    -66.25 (-0.97%)
     
  • Nikkei 225

    28,519.18
    -179.12 (-0.62%)
     

3 High Return on Equity Stock Picks to Consider

GuruFocus.com
·3 min read

- By Alberto Abaterusso

When a company's return on equity (ROE) outperforms the majority of its competitors, it implies the business has been more efficient than its peers in generating earnings.

Thus, investors may want to consider the following companies, as they are beating most of their competitors in terms of a higher ROE.

PayPal Holdings Inc


The first stock to consider is PayPal Holdings Inc (NASDAQ:PYPL), a San Jose, California-based provider of an online payment system to consumers and merchants worldwide.

PayPal has an annualized ROE of 22.61% as of the quarter that ended in Sepember, while the industry median is 4.50%.

The share price grew 121% over the past year up to $238.64 at close on Thursday, Dec. 24 for a market capitalization of $279.61 billion and a 52-week range of $82.07 to $244.25.

3 High Return on Equity Stock Picks to Consider
3 High Return on Equity Stock Picks to Consider

The stock has a price-book ratio of 15.13 and a price-earnings ratio of 90.05.

GuruFocus has assigned a financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10 to the company.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $231.40 per share.

Comcast Corp

The second stock to consider is Comcast Corp (NASDAQ:CMCSA), a Philadelphia-based global operator of media and technology.

Comcast has an annualized ROE of 9.51% as of the quarter that ended in September compared to the industry median of -1.39%.

The share price has increased by 11.5% over the past year up to $50.38 at close on Thursday, Dec. 24 for a market capitalization of $230.5 billion and a 52-week range of $31.71 to $52.49.

3 High Return on Equity Stock Picks to Consider
3 High Return on Equity Stock Picks to Consider

The stock has a price-book ratio of 2.67 and a price-earnings ratio of 22.59.

GuruFocus has assigned a score of 4 out of 10 for the financial strength rating and a score of 8 out of 10 for the profitability rating of the company.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $54.07 per share.

Nike Inc

The third stock to consider is Nike Inc (NYSE:NKE), a Beaverton, Oregon-based designer and seller of athletic footwear and accessories.

Nike has an annualized ROE of 70.28% as of the quarter that ended in August, while the industry has a median of 0.79%.

The share price has risen by 40.5% over the past year up to $141.60 at close on Thursday, Dec. 24 for a market capitalization of $222.29 billion and a 52-week range of $60 to $147.95.

3 High Return on Equity Stock Picks to Consider
3 High Return on Equity Stock Picks to Consider

The price-book ratio is 21.42 and the price-earnings ratio is 80.91.

GuruFocus has assigned a score of 6 out of 10 to the financial strength rating and a score of 8 out of 10 to the profitability rating of the company.

On Wall Street, the stock has a median recommendation rating of buy with an average target price of $163.51 per share.

Disclosure: I have no positions in any security mentioned in this article.

Read more here:



Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

This article first appeared on GuruFocus.