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Alberto Abaterusso
Alberto Abaterusso
Articles (2542) 

3 High Earnings Yield Stocks for the Value Investor

They beat the 20-year high quality market corporate bonds

June 19, 2020 | About:

Selecting stocks that more than double the earnings yield that 20-year high-quality corporate bonds are offering to their holders could be a method to find value opportunities, in my opinion. This category of investment grade bonds represents corporate loans that have been issued by triple-A, double-A and single-A companies.

Since 20-year high-quality corporate bonds have a monthly spot rate of 3.34% as of May 2020, the following three stocks may hold value, as they offer earnings yields of more than 6.68% and price-earnings ratios below 14.97.

CRA International Inc

Shares of CRA International Inc (NASDAQ:CRAI) closed at a price of $37.93 each on Thursday for a market capitalization of $295.45 million.

The Boston, Massachusetts-based provider of economic, financial and management consulting services to businesses in the U.S. and internationally offers an earnings yield of 7.33% and has a price-earnings ratio of 13.64.

The share price has risen 3.7% over the past year for a 52-week range of $21.96 to $58.19.

GuruFocus assigned a positive rating of 5 out of 10 to the company's financial strength and another positive rating of 6 out of 10 also for its profitability.

Wall Street sell-side analysts issued an overweight recommendation rating for this stock and have established an average target price of $68 per share.

Curtiss-Wright Corp

Shares of Curtiss-Wright Corp (NYSE:CW) closed at a price of $91.93 each on Thursday for a market capitalization of $3.83 billion.

The Davidson, North Carolina-based manufacturer and supplier of components to several industries and markets worldwide offers an earnings yield of 7.69% and has a price-earnings ratio of 13.

The share price has fallen 24% over the past year, determining a 52-week range of $70.56 to $149.90.

GuruFocus assigned a positive rating of 6 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 issued a buy recommendation rating for this stock and have set an average target price of $127.80 per share.

Levi Strauss & Co

Shares of Levi Strauss & Co (NYSE:LEVI) closed at a price of $13.78 each on Thursday for a market capitalization of $5.46 billion.

The San Francisco, California-based apparel company offers an earnings yield of 7.11% and has a price-earnings ratio of 14.06.

The share price has fallen 36.7% over the past year for a 52-week range of $9.09 to $24.50.

GuruFocus assigned the stock a positive rating of 5 out of 10 for its financial strength and another positive rating of 6 out of 10 also for its profitability.

Wall Street sell-side analysts issued an overweight recommendation rating for this stock and have established an average target price of $17 per share.

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 how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. 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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