If you screen the market for stocks that more than double the earnings return that 20-year high-quality corporate bonds are yielding to their holders, you could enhance your chance to discover value opportunities. These bonds, which represent corporate loans issued by triple-A, double-A and single-A companies, are offering a 3.18% monthly return to their holders as of June.
Thus, investors may be interested in the following stocks, as they have earnings returns of more than 6.36% and price-earnings ratios below 15.72.
Terex Corp
Shares of Terex Corp (TEX, Financial) traded at $19.17 per unit at close on Friday for a market capitalization of $1.33 billion.
The Westport, Connecticut-based manufacturer and seller of heavy construction machineries including aerial work platforms, cranes and materials processing engines in the U.S. and internationally offers an earnings return of nearly 7% and has a price-earnings ratio of 14.31.
The share price has declined 37.5% over the past year for a 52-week range of $11.54 to $34.67.
GuruFocus assigned a positive rating of 5 out of 10 for the financial strength and a rating of 6 out of 10 for the profitability of the company.
Wall Street sell-side analysts recommend a hold rating for the stock with an average target price of $17 per share.
A-Mark Precious Metals Inc
Shares of A-Mark Precious Metals Inc (AMRK, Financial) traded at a price of $21.74 each at close on Friday for a market capitalization of $152.86 million.
The El Segundo, California-based global precious metals trading operator offers an earnings return of 7.73% and has a price-earnings ratio of 12.94.
The stock has increased by almost 80% over the past year, determining a 52-week range of $7.47 to $22.20.
GuruFocus assigned a positive rating of 5 out of 10 to the company’s financial strength and a moderate rating of 4 out of 10 to its profitability.
Wall Street sell-side analysts recommend a buy rating for the stock and have set an average target price of $19 per share.
The Kroger Co
Shares of The Kroger Co (KR, Financial) traded at $33.85 each at close on Friday for a market capitalization of $26.33 billion.
The Cincinnati, Ohio-based grocery stores chain offers an earnings return of 7.7% and has a price-earnings ratio of 12.97.
The stock has risen 62.3% over the past year, determining a 52-week range of $20.70 to $36.84.
GuruFocus assigned a positive rating of 5 out of 10 to the company’s financial strength and a high rating of 8 out of 10 to its profitability.
Wall Street sell-side analysts recommend an overweight recommendation rating with an average target price of $35.96 per share for the stock.
Disclosure: I have no positions in any securities mentioned.
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