For Immediate Release
Chicago, IL – September 13, 2018 - Stocks in this week’s article are Nucor Corp. NUE, PCM, Inc. PCMI, Celgene Corp. CELG and Rayonier Advanced Materials Inc. RYAM.
Boost Your Portfolio with These 4 High Earnings Yield Stocks
If you are uncertain about whether to invest your money in stocks or bonds, one important financial metric that can show you the right path is earnings yield. It is the reciprocal of the price-to-earnings (P/E) ratio. This ratio can be used for identifying undervalued stocks. Also, this ratio can be used 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 useful for comparing the performance of the market with the 10-year Treasury yield. When the yield of the market index exceeds the 10-year Treasury yield, stocks can be viewed as 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 devoid of risks, investing in stocks always involves some inherent risks. Hence, it would be wise to add a risk premium to the Treasury yield while making comparison 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/322685/boost-your-portfolio-with-these-4-high-earnings-yield-stocks
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Rayonier Advanced Materials Inc. (RYAM) : Free Stock Analysis Report
Celgene Corporation (CELG) : Free Stock Analysis Report
PCM, Inc. (PCMI) : Free Stock Analysis Report
Nucor Corporation (NUE) : Free Stock Analysis Report
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