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Zacks.com featured highlights include: LG Display Co, Dow, Eagle Bulk Shipping, Hancock Whitney Corp and Franchise Group

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For Immediate Release

Chicago, IL – May 11, 2021 – Stocks in this week’s article are LG Display Co., Ltd. LPL, Dow Inc. DOW, Eagle Bulk Shipping Inc. EGLE, Hancock Whitney Corporation HWC and Franchise Group, Inc. FRG.

These High Earnings Yield Stocks Could Yield Huge Returns

Investors often use P/E ratio and other valuation metrics while picking undervalued stocks with solid upside potential. However, it is difficult to use the P/E ratio to compare stocks with fixed income securities. This is where earnings yield comes handy.

Earnings yield is calculated as (Annual Earnings per Share/Market Price) x 100. In other words, it is the inverse of the P/E ratio.

Other things remaining constant, a stock with higher earnings yield has the potential of providing comparatively greater returns. This metric is used to compare the performance of a market index with the 10-year Treasury yield as well.

For instance, if the yield of the market index is more than the 10-year Treasury, stocks can be considered as undervalued in comparison to bonds. In such a case, investing in the stock market would be a better option for a value investor.

However, given the risk-free nature of T-bills, it would be prudent to add a risk premium to their yield while comparing with a stock or the market index.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1530233/these-high-earnings-yield-stocks-could-yield-huge-returns

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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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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Dow Inc. (DOW) : Free Stock Analysis Report
 
Franchise Group, Inc. (FRG) : Free Stock Analysis Report
 
LG Display Co., Ltd. (LPL) : Free Stock Analysis Report
 
Eagle Bulk Shipping Inc. (EGLE) : Free Stock Analysis Report
 
Hancock Whitney Corporation (HWC) : Free Stock Analysis Report
 
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Zacks Investment Research