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Alberto Abaterusso
Alberto Abaterusso
Articles (2321) 

3 High Earnings Yield Stocks to Consider

These securities top 20-year high-quality market corporate bonds

December 24, 2019 | About:

Screening for stocks that more than double the earnings return that 20-year high-quality corporate bonds grant to their holders (an average monthly spot rate of 3.51% as of the writing of this article) raises chances to uncover value opportunities.

The 20-year high-quality corporate bonds represent corporate loans issued by triple-A, double-A and single-A companies. The following stocks are trading their earnings for less than 14.25 times their price, according to the earnings yield.

Owens Corning

Shares of Owens Corning (NYSE:OC) closed at $65.00 on Monday for a market capitalization of $7.07 billion. The Toledo, Ohio-based producer and distributor of building products and equipment has an earnings yield of 7.04% versus the industry median of 7.69% and a price-earnings ratio of 14.21 versus the industry median of 13.01.

The stock has risen 84.5% over the past five years through Dec. 23, though it is still trading below its fair price based on the Peter Lynch chart.

GuruFocus assigned a 4 out of 10 rating for the company's financial strength and an 8 out of 10 rating for its profitability.

The stock grants a forward dividend yield of 1.48% as of Monday.

Wall Street issued an overweight recommendation rating for shares of Owens Corning with an average target price of $73.31.

Vishay Intertechnology

Shares of Vishay Intertechnology Inc. (NYSE:VSH) closed at $21.30 on Monday for a market capitalization of $3.08 billion. The Malvern, Pennsylvania-based manufacturer and provider of semiconductors has an earnings yield of 8.1% versus the industry median of 4.2% and a price-earnings ratio of 12.31 versus the industry median of 23.92.

The stock price is up 49.4% over the past five years. However, shares still seem to be cheap based on the Peter Lynch chart.

Vishay Intertechnology has received a rating of 7 out of 10 for both its financial strength and its profitability.

The stock grants a forward dividend yield of 1.79% as of Monday.

The stock has a hold recommendation rating from Wall Street analysts and an average target price of $17.60 per share.

Primoris Services

Shares of Primoris Services Corporation (NASDAQ:PRIM) closed at $22.56 on Monday with a market capitalization of $1.1 billion.

The Dallas, Texas-based specialty contractor and infrastructure company has an earnings yield of 7.6%, which is nearly in line with the industry median of 7.7%. The price-earnings ratio of 13.12 is slightly higher than the industry median of 13.01.

The stock appears cheap according to the following Peter Lynch chart, following a 5-year decline of 2%.

GuruFocus assigned the company a financial strength rating of 5 out of 10 and a profitability rating of 7 out of 10.

The stock offers a forward dividend yield of 1.07% as of Monday.

Wall Street sell-side analysts issued an overweight recommendation rating for shares of Primoris Services Corporation and have set an average target price of $28.75.

Disclosure: I have no positions in any securities mentioned.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about gold, silver and precious metals mining industries. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master's Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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