For Immediate Release
Chicago, IL – July 7, 2020 – Stocks in this week’s article are Bristol-Myers Squibb BMY, Vale S.A. VALE, Gilead Sciences GILD, The Kroger Co. KR and Delek Logistics Partners, LP. DKL.
5 High Earnings Yield Stocks for a Healthy Portfolio
The earnings potential of a stock is an important consideration while making investment decisions. This makes the Earnings Yield ratio a handy tool for stock selection.
Earnings yield is calculated as (Annual Earnings per Share/Market Price) x 100. It is the inverse of the P/E ratio. While comparing similar stocks, the one with higher earnings yield has the potential to provide comparatively greater returns.
Earnings yield has an edge over P/E ratio as it can be used to compare a stock with not just other stocks but also with fixed income securities. This metric is often used to compare the performance of a market index with the 10-year Treasury yield.
For instance, if the yield of the market index is more than the 10-year Treasury, stocks can be considered as undervalued than bonds. In such a case, investing in the stock market would be a better option for a value investor.
However, in view of the risk-free nature of T-bills, 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/998228/5-high-earnings-yield-stocks-for-a-winning-portfolio
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Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report
VALE S.A. (VALE) : Free Stock Analysis Report
The Kroger Co. (KR) : Free Stock Analysis Report
Delek Logistics Partners, L.P. (DKL) : Free Stock Analysis Report
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