For immediate release
Chicago, IL – March 28, 2023 – Stocks in this week’s article are Renaissance Renewal Holdings RNR, Urban Outfitters URBN, Liberty Energy LBRT and SIGA Technologies SIGA.
4 High capture yield value reads between prevailing uncertainty
At the most recent FOMC meeting, the Fed jacked interest rates by 25 bps to the 4.75-5% range. This was the ninth straight hike by the Fed, bringing the rate down to its highest level since 2007. However, substance H has turned slightly less hawkish on the banking crisis. Only one more rate hike of 25 bps is expected this year, followed by rate cuts in 2024 and 2025.
Meanwhile, the central bank is also starting to hit inflation at 2%. Annual inflation in the United States slowed to 6% in February 2023, the lowest since September 2021. However, with the jobs market still hot and H sound softening, investors can expect a spike in growth in the near term. Considering the persistent inflationary concerns and credit chaos, there is a clear lack of clarity and the market is expected to remain volatile.
In such uncertain times, investing should be one of the most important things for investors. It takes a long-term view, and estimates the intrinsic value of companies based on their fundamental strengths, earning potential, and financials. The value investing approach seeks profit from investing in stocks that appear to be trading in price to their intrinsic value and ultimately make handsome returns when the stock price rises to that value, considering the fundamentals themselves.
One of the most common valuation metrics used to pick out undervalued stocks with solid upside potential is the P/E ratio. However, there is another interesting method that you can consider for getting decent value from wood. that is, and the earnings yield. He could invest in high-yielding stocks like that RenaissanceRe Holdings, Urban Outfitters, Freedom Energy and SIGAS Technologies that you may bring in a decent long term rewards.
Earnings more highlighting than yield P/E *
Earnings yield is useful for investors who are concerned about the rate of return on the investment. This metric, expressed as a percentage, is calculated as annual earnings per share (EPS) divided by stock price. This metric measures the anticipated yield (or return) from earnings for each dollar invested in the stock today. Comparing stocks, if they are similar, those with higher yields are undervalued, while those with lower yields are seen as overpriced.
While the earnings yield is nothing more than the proportional P/E ratio, it is still a little more illuminating than the traditional P/E ratio, which also helps compare stocks with fixed-income securities. Investors often choose earnings stocks with prevailing interest rates, such as the current 10-year Treasury yield, as the sense of return on investment that it offers compared to the barely risk-free return.
If the yield on a stock is lower than the 10-year Treasury yield, it is valued relative to bonds. On the other hand, if it yields in the upper root, it is considered to be despised. In this situation, investing in the stock market would be a better option for the value investor.
Below we highlight four of the 78 trees that made it through the screen;
To be reborn is a provider of property catastrophe reconciliation to insurers and reinsurers globally. It also offers special reconciliation of accident, health, aviation, satellite care, and homeowner’s insurance in various parts of the United States.
The Zacks Consensus estimate for RNR’s 2023 premiums implies annual growth of 218.6%. EPS estimates have moved north from $1.61 over the past 60 days. The stock currently sports a Zacks Rank #1 and a value score of A.
Urban Outfitters is a lifestyle property that offers designer clothing and accessories, footwear, home decor and gift products. Urban marketing usually goes directly to consumers through stores, catalogs, call centers and shopping platforms.
The Zacks Consensus Estimate for the current fiscal year implies growth of 41.7%. EPS estimates have moved north by 19 cents over the past 30 days. The stock currently sports a Zacks Rank #1 and a value score of A.
Freedom of Energy is the premier provider of hydraulic fracturing and other ancillary services to onshore exploration and production companies in North America. The company focuses on developing technology solutions and industrial technologies for the oil and gas industry.
The Zacks Consensus Estimate for LBRT’s 2023 earnings implies annual growth of 62%. EPS estimates have moved north by 21 cents over the past 60 days. The stock currently carries a Zacks Rank #2 and a value score of A.
SIGAS Technologies is involved in applying viral and bacterial genomics and sophisticated computer modeling in the design and development of new products for the prevention and treatment of serious infectious diseases, with an emphasis on products for biological defense.
The Zacks Consensus Estimate for SIGA’s 2023 earnings implies annual growth of 130.4%. EPS estimates have moved 11 cents over the past 30 days. The stock currently carries a Zacks Rank #2 and a value score of B.
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For the rest of this week’s screenshot article, please visit Zacks.com at: https://www.zacks.com/stock/news/2070637/4-high-earnings-yield-value-picks-amid-prevailing-uncertainty
Disclosure: Officers, directors and/or employees of Zacks Investments may have or have sold securities short and/or hold long and/or short positions in the options listed in this material. Federal investment advisory firms may own or sell securities short and/or hold long and/or short positions in the options listed in this material.
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