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Zacks.com featured highlights include: Summit Hotel Properties, Meritage Homes, Eagle Pharm and BrightSphere Investment Group

Zacks.com featured highlights include: Summit Hotel Properties, Meritage Homes, Eagle Pharm and BrightSphere Investment Group

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This story originally appeared on Zacks

For Immediate Release

Chicago, IL – December 27, 2021 – Stocks in this week’s article are Summit Hotel Properties, Inc. INN, Meritage Homes Corporation MTH, Eagle Pharmaceuticals, Inc. EGRX and BrightSphere Investment Group plc BSIG.

- Zacks

4 High Earnings Yield Stocks Likely to Pay Off Big-Time

The price-to-earnings (P/E) ratio is often used by investors to pick undervalued stocks. Yet, it is difficult to use the P/E ratio to compare stocks with fixed income securities. This is where the inverse strategy — Earnings Yield — comes in handy.

Earnings yield is calculated as (Annual Earnings per Share/Market Price) x 100. While comparing similar stocks, the one with higher earnings yield has the potential of providing comparatively greater returns. Summit Hotel PropertiesMeritage HomesEagle Pharm and BrightSphere Investment Group could be some attractive bets if you are looking for high earnings yield picks.

The earnings yield parameter 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 in comparison to bonds. In such a case, investing in the stock market would be a better option for a value investor.

You need to keep in mind that T-bills are safe bets while stock investments always have an element of risk. Hence, it would be prudent 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/1842794/4-high-earnings-yield-stocks-likely-to-pay-off-big-time

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Email: pr@zacks.com

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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

 

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.



Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Meritage Homes Corporation (MTH): Free Stock Analysis Report

 

Summit Hotel Properties, Inc. (INN): Free Stock Analysis Report

 

Eagle Pharmaceuticals, Inc. (EGRX): Free Stock Analysis Report

 

BrightSphere Investment Group Inc. (BSIG): Free Stock Analysis Report

 

To read this article on Zacks.com click here.

 

Zacks Investment Research