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Zacks.com featured highlights include: CDW Corp, Celanese Corp, Virtu Financial, Polaris and Lam Research

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For Immediate Release

Chicago, IL – May 4, 2021 – Stocks in this week’s article are CDW Corporation CDW, Celanese Corporation CE, Virtu Financial, Inc. VIRT, Polaris Inc. PII and Lam Research Corporation LRCX.

5 ROE Stocks to Buy as Markets Mix Caution with Optimism

The U.S. equity markets continued to trade in the vicinity of record highs, barring minor hiccups, as the economy recorded solid growth in the first quarter with significant federal aid and robust labor market conditions acting as catalysts. The Fed pledged to keep the interest rates near zero as it maintained an accommodative monetary policy to fuel growth.

However, at the same time, the Fed cautioned of a likely rise in inflation during the transitionary phase of post-pandemic recovery, which it aimed to regulate at around 2% over the longer run. With a better-than-expected performance from hitherto reported companies, the markets appear to be on the way up as more companies gear up for earnings release in another busy week ahead.

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, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios like return on equity (ROE). A high ROE ensures that the company is reinvesting 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 companies 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.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1493408/5-roe-stocks-to-buy-as-markets-mix-caution-with-optimism

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

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Contact: Jim Giaquinto

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Lam Research Corporation (LRCX) : Free Stock Analysis Report
 
Polaris Inc. (PII) : Free Stock Analysis Report
 
Celanese Corporation (CE) : Free Stock Analysis Report
 
Virtu Financial, Inc. (VIRT) : Free Stock Analysis Report
 
CDW Corporation (CDW) : Free Stock Analysis Report
 
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