Zacks.com Featured Highlights Include: Stryker, T. Rowe, Applied Materials, Fiat And Northrop

 | Jul 11, 2019 11:14PM ET

For Immediate Release

Chicago, IL – July 12, 2019 - Stocks in this week’s article are Stryker Corp. (NYSE:SYK) , T. Rowe Price Group, Inc. (NASDAQ:TROW) , Applied Materials, Inc. (NASDAQ:AMAT) , Fiat Chrysler Automobiles N.V. (NYSE:FCAU) and Northrop Grumman Corp. (NYSE:NOC) .

5 ROE Stocks to Profit as Fed-Fueled Rate Cut Hopes Soar

The U.S. equity markets gained momentum yesterday as leading benchmark indices hit record high on expectations of a Fed rate cut as early as this month. Despite the resumption of U.S.-China trade talks and a strong June jobs report, slower business investment and low inflation rates were cited as the primary reasons for Fed’s accommodative monetary policy. This, in turn, keeps intact broad-based Wall Street expectations of around three interest rate cuts this year.

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, singling out cash-rich stocks alone does not make for a solid investment proposition unless these are backed by attractive efficiency ratios, like return on equity (ROE). A high ROE ensures that the company is reinvesting its cash at a high rate of return.

For the rest of this Screen of the Week article please visit Zacks.com at: Zacks Investment Research

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