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

    52.20
    -0.16 (-0.31%)
     
  • Gold

    1,818.90
    -11.00 (-0.60%)
     
  • Silver

    24.61
    -0.26 (-1.03%)
     
  • EUR/USD

    1.2080
    -0.0004 (-0.04%)
     
  • 10-Yr Bond

    1.0970
    -0.0320 (-2.83%)
     
  • GBP/USD

    1.3579
    -0.0004 (-0.03%)
     
  • USD/JPY

    103.8000
    0.0000 (0.00%)
     
  • BTC-USD

    35,955.02
    -0.04 (-0.00%)
     
  • CMC Crypto 200

    701.06
    -34.08 (-4.64%)
     
  • FTSE 100

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

    28,265.44
    -253.74 (-0.89%)
     

A Trio of High Earnings Yield Stocks for the Value Investor

GuruFocus.com
·3 min read

If you screen the market for stocks that more than double the earnings return that 20-year high-quality corporate bonds are yielding to their holders, you could enhance your chance to discover value opportunities. These bonds, which represent corporate loans issued by triple-A, double-A and single-A companies, are offering a 3.18% monthly return to their holders as of June.

Thus, investors may be interested in the following stocks, as they have earnings returns of more than 6.36% and price-earnings ratios below 15.72.


Terex Corp

Shares of Terex Corp (NYSE:TEX) traded at $19.17 per unit at close on Friday for a market capitalization of $1.33 billion.

The Westport, Connecticut-based manufacturer and seller of heavy construction machineries including aerial work platforms, cranes and materials processing engines in the U.S. and internationally offers an earnings return of nearly 7% and has a price-earnings ratio of 14.31.

The share price has declined 37.5% over the past year for a 52-week range of $11.54 to $34.67.

GuruFocus assigned a positive rating of 5 out of 10 for the financial strength and a rating of 6 out of 10 for the profitability of the company.

Wall Street sell-side analysts recommend a hold rating for the stock with an average target price of $17 per share.

A-Mark Precious Metals Inc

Shares of A-Mark Precious Metals Inc (NASDAQ:AMRK) traded at a price of $21.74 each at close on Friday for a market capitalization of $152.86 million.

The El Segundo, California-based global precious metals trading operator offers an earnings return of 7.73% and has a price-earnings ratio of 12.94.

The stock has increased by almost 80% over the past year, determining a 52-week range of $7.47 to $22.20.

GuruFocus assigned a positive rating of 5 out of 10 to the company's financial strength and a moderate rating of 4 out of 10 to its profitability.

Wall Street sell-side analysts recommend a buy rating for the stock and have set an average target price of $19 per share.

The Kroger Co

Shares of The Kroger Co (NYSE:KR) traded at $33.85 each at close on Friday for a market capitalization of $26.33 billion.

The Cincinnati, Ohio-based grocery stores chain offers an earnings return of 7.7% and has a price-earnings ratio of 12.97.

The stock has risen 62.3% over the past year, determining a 52-week range of $20.70 to $36.84.

GuruFocus assigned a positive rating of 5 out of 10 to the company's financial strength and a high rating of 8 out of 10 to its profitability.

Wall Street sell-side analysts recommend an overweight recommendation rating with an average target price of $35.96 per share for the stock.

Disclosure: I have no positions in any securities mentioned.

Read more here:



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

This article first appeared on GuruFocus.