For Immediate Release
Chicago, IL – January 31, 2020 – Stocks in this week’s article are TEGNA Inc. TGNA, Genesco Inc. GCO, Devon Energy Corp. DVN, Credit Suisse Group CS and KB Home KBH.
Scoop Up These High Earnings Stocks for a Standout Portfolio
Earnings yield is a useful ratio for investors who have exposure to both stocks and bonds. This ratio gains an upper hand over the more commonly used P/E ratio as it facilitates comparison of stocks with fixed-income securities. Interestingly, it is simply the inverse of P/E ratio.
Earnings yield is calculated as (Annual Earnings per Share/Market Price) x 100. If other factors are constant while comparing stocks, the one with a higher earnings yield has the potential to provide comparatively greater returns. That’s because this metric measures the anticipated yield (or return) from earnings for each dollar invested in a stock today.
Earnings yield can also be used to compare the performance of a market index with the 10-year Treasury yield. For instance, when the yield of the market index is more than the 10-year Treasury yield, stocks can be considered as undervalued than bonds. In this situation, investing in the stock market would be a better option for a value investor.
However, you need to keep in mind that T-bills are risk free, while investing in stocks always comes with a caveat. Hence, it would be a good idea to add a risk premium to the Treasury yield while comparing it with the earnings yield of a stock or the overall market.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/740489/scoop-up-these-high-earnings-stocks-for-a-standout-portfolio
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Credit Suisse Group (CS) : Free Stock Analysis Report
KB Home (KBH) : Free Stock Analysis Report
Devon Energy Corporation (DVN) : Free Stock Analysis Report
TEGNA Inc. (TGNA) : Free Stock Analysis Report
Genesco Inc. (GCO) : Free Stock Analysis Report
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