1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Alberto Abaterusso
Alberto Abaterusso
Articles (2380) 

3 High Earnings Return Stocks

These stocks hold considerable potential to be high-return investments

October 26, 2020 | About:

Choosing stocks whose earnings return is more than twice the monthly spot rate of the 20-year high-quality market corporate bonds grants a higher chance to unearth high-return investments, in my opinion. This class of investment-grade bonds represents corporate loans issued by triple-A, double-A and single-A rated companies.

Since these bonds give a monthly spot rate of 2.96% as of October 2020, the following three stocks may be of interest to investors, as they offer earnings returns of more than 5.9% at price-earnings ratios of less than 17.

Intel Corp

Shares of Intel Corp (NASDAQ:INTC) were trading at $48.20 per unit at close on Friday for a market capitalization of $197.52 billion.

The Santa Clara, California-based semiconductor company gives an earnings return of 11.3% and has a price-earnings (PE) without non-recurring items (NRI) ratio of 8.85.

The share price has fallen by 15% over the past year for a 52-week range of $43.63 to $69.29.

GuruFocus assigned a rating of 6 out of 10 for the company's financial strength and of 9 out of 10 for its profitability.

Wall Street sell-side analysts recommend a hold rating for this stock and have set an average target price of $54.55 per share.

Whirlpool Corp

Shares of Whirlpool Corp (NYSE:WHR) traded at a price of $198.11 each at close on Friday for a market capitalization of $12.39 billion.

The Benton Harbor, Michigan-based home appliances producer and marketer gives an earnings return of 6.96% and has a PE without NRI ratio of 14.37.

The stock has risen by 28.2% over the past year, determining a 52-week range of $64 to $207.30.

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

Wall Street sell-side analysts recommend a hold rating for this stock and have produced an average target price of $210.14 per share.

MDU Resources Group Inc

Shares of MDU Resources Group Inc (NYSE:MDU) were trading at $24.77 per unit at close on Friday for a market capitalization of $4.97 billion.

The Bismarck, North Dakota-based distributor of regulated electricity and gas, which is also a producer and seller of construction materials, gives an earnings return of 7.2% and has a PE without NRI ratio of 13.92.

The stock has fallen 11.6% over the past year, determining a 52-week range of $15 to $32.22.

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

Wall Street sell-side analysts recommend an overweight rating for this stock and have established an average target price of $28.33 per share.

Disclosure: I have no positions in any securities mentioned.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

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

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Alberto Abaterusso


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)