Zacks.com Featured Highlights Include: Wabash National, B Home, Kronos And Banco Bilbao
Zacks Investment Research | May 07, 2018 09:57PM ET
For Immediate Release
Chicago, IL – May 8, 2018 - Stocks in this week’s article Wabash National Corp. (NYSE:WNC) , KB Home (NYSE:KBH) , Kronos Worldwide Inc (NYSE:KRO) and Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) .
4 Solid Earnings Yield Stocks to Boost Your Portfolio
If you are not sure whether to invest your money in stocks or bonds, one important financial metric that can show you the right way is earnings yield. It is the reciprocal of the price-to-earnings (P/E) ratio. This ratio can be utilized for identifying undervalued stocks. Also, this ratio can be effectively 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 which gives high earnings yield should fetch higher returns.
This ratio is also very useful while comparing the performance of the market with the 10-year Treasury yield. When the yield of the market index is higher than the 10-year Treasury yield, stocks can be viewed as undervalued in comparison to bonds. This means that investing in the stock market is a better choice for a value investor.
However, while T-bills are free 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 comparing 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: Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.