Zacks.com strengths include CommScope Holding Company, Microchip Technology (MCHP), Qualcomm, CBRE Group and Nucor

0

For immediate release

Chicago, Illinois – February 9, 2022 – The stocks in this week’s article are CommScope Holding Company, Inc. COMM, Microchip Technology Inc. MCHP, Qualcomm Inc. QCOM, CBRE Group, Inc. CBRE and Nucor Corp. NUDE.

5 ROE stocks to profit as intense volatility spooks markets

After a strong start to the year, growth in the US stock market appears to have slowed due to intense volatility. Soaring inflationary pressures driven by high crude oil prices continue to weigh on markets as a possible interest rate hike by the Fed looms.

Additionally, a sharp drop in some blue-chip tech stocks sent the broader indexes tumbling with a series of divergent quarterly performances. However, markets regained some lost ground, with the US economy adding 467,000 jobs in January, despite a surge in infections from the Omicron variant. Large-scale job additions across different sectors have portrayed relatively strong labor market conditions amid coronavirus-induced adversities.

While investors use a wait-and-see approach in a classic example of “support and fill” in the market, they can benefit from “cash cow” stocks that generate higher returns. However, identifying cash-rich stocks alone is not a strong investment proposition, unless it is backed by attractive efficiency ratios such as return on equity (ROE). A high ROE ensures that the company reinvests its cash at a high rate of return. CommScope Holding Company, Inc., Microchip Technology Inc., Qualcomm Inc., CBRE Group, Inc. and Nucor Corp. are some of the stocks with a high ROE to profit from.

Why RE?

ROE = Net income/Equity

ROE helps investors distinguish profit-generating companies from profit-burners and is useful in determining a company’s financial health. In other words, this financial metric allows investors to identify companies that diligently deploy cash for higher returns.

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

For the rest of this article on Screen of the Week, please visit Zacks.com at: https://www.zacks.com/stock/news/1864063/5-roe-stocks-to-profit-as-intense-volatility-spooks-markets

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 the options mentioned herein. An affiliated investment adviser may hold or have shorted securities and/or hold long and/or short positions in options mentioned herein.

About the week screen

Zacks.com created the first and best screening system on the web, earning it the “#1 Stock Screening Site” accolade from Money Magazine. But powerful screening tools are just the start. That’s why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Solid stocks that should make headlines

Many are low profile and fly under Wall Street’s radar. They are almost unknown to the general public. Yet the 220 “strong buys” in today’s Zacks #1 ranking were generated by the stock picking system that more than doubled the market from 1988 to 2016. Its average gain was +25% per year. See 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 affiliated entities (including broker and investment adviser), which may engage in transactions involving the aforementioned securities for clients of such affiliates.

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: pr@zacks.com

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

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 about this resource to you subject to the Zacks “Terms and Conditions of Service” disclaimer. www.zacks.com/disclaimer.

Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document 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 any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The 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 asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.

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

QUALCOMM Incorporated (QCOM): Free Inventory Analysis Report

Nucor Corporation (NUE): Free Inventory Analysis Report

Microchip Technology Incorporated (MCHP): Free Stock Analysis Report

CommScope Holding Company, Inc. (COMM): Free Inventory Analysis Report

CBRE Group, Inc. (CBRE): Free Stock Analysis Report

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

Zacks Investment Research

Share.

Comments are closed.