Zacks.com highlights include Jabil, Ryder System, AGNC Investment, CNH Industrial and Equinor ASA

For Immediate Release

Chicago, IL – November 23, 2022 – Stocks featured in this week’s article are Jabil Inc. JBL, Ryder System, Inc. R, AGNC Investment Corp. AGNC, CNH Industrial NV CNHI and Equinor ASA EQNR.

5 high-ROE stocks to buy as deaths in China raise concerns

US stock markets declined in recent trading sessions as fresh Covid-19 deaths in China sparked concerns about the resumption of market restrictions and strict measures to contain the spread of the infection. That put a brake on a short-term rally seen over the past week, buoyed by better-than-expected inflation data that showed the producer price index rose 0.2% in October, bucking consensus expectations for a 0.4% rise. However, the recent drop dampened hopes of an imminent recovery in the global economy and excited markets.

Meanwhile, investors are awaiting the release of minutes from the Fed’s November meeting for definitive guidance on the future rate hike program and its likely impact on the economy. With its fourth straight hike of 75 basis points, the Fed has pledged to continue its aggressive rate-hiking policy to contain high inflationary pressures, which have yet to ease from near 40-year highs, fueling speculation of more rate hikes in the pipeline.

In a classic example of “backing and filling” in the market, because investors take a wait-and-see approach, they can take advantage of “cash cow” stocks that generate higher returns. However, identifying cash-rich stocks alone does not make a solid investment proposition unless backed by attractive efficiency metrics such as return on equity (ROE). A high ROE ensures that the company is reinvesting cash with a high return. Jabil Inc., Ryder System, Inc., AGNC Investment Corp., CNH Industrial NV and Equinor ASA are some of the high-ROE stocks to profit from.

ROE: A key metric

ROE = Net Income/Equity

ROE helps investors distinguish profitable companies from profitable companies and is useful in determining a company’s financial health. In other words, this financial metric allows investors to identify companies that are conscientiously using cash for higher returns.

Additionally, ROE is often used to compare a company’s profitability to other companies in the industry – the higher the better. It measures how well a company is multiplying its earnings without investing new equity and shows management’s efficiency in rewarding shareholders with attractive risk-adjusted returns.

Here are five of the eight stocks that qualified for the screen:

Jabil: Headquartered in St. Petersburg, FL, Jabil is one of the largest global providers of electronic manufacturing services. The company provides electronics design, product management and after-market services to customers in the aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, storage and telecommunications sectors.

It delivered a trailing four-quarter earnings surprise averaging 9.3% and has a long-term earnings growth expectation of 12%. Jabil currently carries a Zacks rank #1. You can see the full list of today’s Zacks #1 Rank stocks can be found here.

Ryder system: Based in Florida, Ryder System is one of the world’s largest providers of integrated logistics and transportation solutions. It serves a variety of industries, the most important of which are automotive, electronics, transportation, food, wood and wood products, hospitality and home textiles.

The company delivered a trailing four-quarter earnings surprise averaging 30.1%. Ryder System carries a Zacks Rank #2.

AGNC Investment: AGNC Investment, formerly known as American Capital Agency Corp., is a real estate investment trust focused on leveraged investments in agency mortgage-backed securities. These include pass-through residential real estate securities and collateralized mortgage obligations.

AGNC Investment pursues an active portfolio management policy, which includes re-evaluating and adjusting its portfolio and hedging in a changing interest rate and mortgage market environment. The company delivered a trailing four-quarter earnings surprise averaging 22.1%. AGNC Investment has a Zacks Rank #1.

CNH Industry: Headquartered in London, UK, CNH Industrial is one of the leading equipment and service companies engaged in the manufacture and sale of agricultural and construction machinery. CNH Industrial currently has a commercial presence in approximately 180 countries.

The company delivered a trailing four-quarter earnings surprise averaging 18.9%. CNH Industrial has a Zacks Rank #1.

Equinor: Headquartered in Stavanger, Norway, Equinor is one of the world’s leading integrated energy companies with operations in 30 countries. The company is the second largest supplier of natural gas in Europe. Equinor is also a leading seller of crude oil.

Equinor delivered a trailing four-quarter earnings surprise averaging 10.2%. It sports a Zacks Rank #1.

You can get the rest of the stocks on this list by signing up for your two week free trial of Research Wizard now and using this screen in your own trading. In addition, you can also create your own strategies and test them first before taking the investment leap.

The research assistant is a great place to start. It’s easy to use. Everything in plain language. And it’s very intuitive. Start your Research Wizard trial today. And the next time you’re reading an economic report, open up the research assistant, plug in your finds, and see what gems come out.

Click here to sign up for a free trial of Research Wizard today.

For the remainder of this Screen of the Week article, please visit Zacks.com at: https://www.zacks.com/stock/news/2020764/5-high-roe-stocks-to-buy-as-china-covid-deaths-spark-concern.

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 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 mentioned in this material.

About the screen of the week

Zacks.com created the web’s first and best screening system, which was named the #1 Site for Screening Stocks by Money Magazine. But powerful screening tools are just the beginning. That’s 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 given little publicity and fly under Wall Street’s radar. They are practically unknown to the general public. Yet today’s 220 Zacks #1 “Strong Buys” were generated by the stock picking system that more than doubled the market from 1988 to 2016. His average gain has been a stellar 25% gain per year. Check out these high potential stocks for free >>.

Follow us on Twitter: https://www.twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliates (including a broker-dealer and an investment adviser) who may effect transactions in the foregoing securities for the clients of those affiliates.

Contact: Jim Giaquinto

Company: Zacks.com

Telephone: 312-265-9268

Email: [email protected]

Visit: https://www.zacks.com/

Zacks.com provides investment resources and tells you about those resources to use in your own investment decisions. Zacks is providing information about this resource to you subject to the Zacks “Terms of Service” disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. The potential for loss is inherent in every investment. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether an investment is suitable for a is suitable for certain investors. It should not be assumed that investments in any security, company, sector or market identified and described have been or will be profitable. All information is current at the time of publication and is subject to change without notice. Any views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or investment management activities for securities. These returns are from hypothetical portfolios composed of Zacks rank = 1 stocks rebalanced monthly excluding transaction costs. These are not actual stock portfolio returns. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information on the performance figures presented in this press release.

Want the latest recommendations from Zacks Investment Research? Today you can download the 7 best stocks for the next 30 days. Click here to get this free report

Ryder System, Inc. (R): Free Stock Research Report

AGNC Investment Corp. (AGNC): Free Stock Analysis Report

Jabil, Inc. (JBL): Free Stock Research Report

CNH Industrial NV (CNHI): Free Stock Research Report

Equinor ASA (EQNR): Free Stock Research Report

To read this article on Zacks.com, click here.

Zacks Investment Research



Source

Leave a Reply

Your email address will not be published. Required fields are marked *