>
  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 (2532) 

A Trio of High Return on Equity Ratio Stock Picks to Consider

These companies are more profitable than most of their peers

December 03, 2020 | About:

When a company's return on equity (ROE) ratio beats most of its competitors, it implies the company has been very efficient in generating earnings.

Thus, investors may want to have a look at the following companies, as they are topping most of their competitors in terms of a higher ROE ratio.

RELX PLC

The first stock is RELX PLC (NYSE:RELX), an English provider of information-based analytics that support various organizations to make important advancements in their activities, enhance the decision-making process and increase productivity.

RELX PLC has a ROE ratio of 59.3%, while the industry median has a ROE ratio of -1.78%.

The share price growth was flat over the past year and closed at $23.64 on Wednesday for a market capitalization of $45.68 billion and a 52-week range of $16.81 to $27.26.

The stock has a price-book ratio of 16.37 (versus the industry median of 1.57) and a price-earnings ratio of 26.95 (versus the industry median of 22.5).

GuruFocus has assigned a financial strength rating of 4 out of 10 and a profitability rating of 8 out of 10 to the company.

On Wall Street, the stock has an overweight recommendation rating with an average target price of $28.

Deckers Outdoor Corp

The second stock to consider is Deckers Outdoor Corp (NYSE:DECK), a Goleta, California-based designer and distributor of casual and high performing footwear and apparel.

Deckers Outdoor Corp has a ROE ratio of 27.99%, which is thrashing the industry median of 0.75%.

The share price has increased by 66.62% over the past year up to $269.19 at close on Wednesday for a market capitalization of $7.56 billion and a 52-week range of $78.70 to $285.28.

The stock has a price-book ratio of 6.08 (versus the industry median of 0.97) and a price-earnings ratio of 24.45 (versus the industry median of 18.11).

GuruFocus has assigned a score of 8 out of 10 for both the company's financial strength rating and its profitability rating.

On Wall Street, the stock has a buy recommendation rating with an average target price of $304 per share.

Chemed Corp

The third stock to have a look at is Chemed Corp (NYSE:CHE), a Cincinnati, Ohio-based company that provides hospice and palliative care services to U.S. patients through a network of physicians and other professionals.

Chemed Corp has a ROE ratio of 37.32%, while the industry has a median of 3.85%.

The share price has risen by 10% over the past year up to $476.69 at close on Wednesday for a market capitalization of $7.6 billion and a 52-week range of $330.01 to $528.29.

The price-book ratio is 9.49 (versus the industry median of 2.9) and the price-earnings ratio is 28.91 (versus the industry median of 29.78).

GuruFocus has assigned a score of 8 out of 10 to the financial strength rating and a score of 9 out of 10 to the profitability rating of the company.

On Wall Street, the stock has a buy recommendation rating with an average target price of $565 per share.

Disclosure: I have no positions in any security mentioned in this article.

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
wigbertHigh 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)