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Alberto Abaterusso
Alberto Abaterusso
Articles (2612) 

A Trio of High Earnings Return Stocks

They are thrashing the 20-year high-quality market corporate bonds

January 10, 2021 | About:

If you pick securities whose earnings return is more than twice that of the 20-year high-quality market corporate bonds, you could increase your probability to unearth value opportunities, in my opinion. These bonds imply an extremely low risk of bankruptcy as they represent corporate loans issued by triple-A, double-A and single A-rated companies, and are currently granting a monthly return of 2.92% back to their holders.

Thus, investors may want to consider the following securities, as they offer earnings returns of more than 5.84% and have price-earnings ratios below 17.12.

Bio-Rad Laboratories Inc

Shares of Bio-Rad Laboratories Inc (NYSE:BIO) were trading at $621.37 per unit at close on Friday for a market capitalization of $18.3 billion.

The Hercules, California-based manufacturer and marketer of devices for clinical diagnostic and life science research organizations in North America and internationally offers an earnings return of 18.8% and has a price-earnings ratio of 5.32.

The share price has risen by 62% over the past year, determining a 52-week range of $309.38 to $648.39.

GuruFocus assigned a rating of 8 out of 10 for the company's financial strength and a rating of 6 out of 10 for its profitability.

Wall Street sell-side analysts recommend an overweight median rating with an average target price of $661.25 per share for this stock.

Supernus Pharmaceuticals Inc

Shares of Supernus Pharmaceuticals Inc (NASDAQ:SUPN) were trading at a price of $27.26 per unit at close on Friday for a market capitalization of $1.44 billion.

The Rockville, Maryland-based pharmaceutical developer of treatments for disorders of the central nervous system offers an earnings return of 8.84% and has a price-earnings ratio of 11.31.

The stock has risen by 12.41% over the past year, determining a 52-week range of $13.12 to $27.55.

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

Wall Street sell-side analysts recommend an overweight median rating for this stock and have established an average target price of $27.75 per share.

Five Star Senior Living Inc

Shares of Five Star Senior Living Inc (NASDAQ:FVE) were trading at $12.76 per unit at close on Friday for a market capitalization of $1.46 billion.

The Newton, Massachusetts-based operator of nearly 270 senior living communities in 32 states of the U.S. offers an earnings return of 39.84% and has a price-earnings ratio of 2.51.

The stock has risen by 49.4% over the past year for a 52-week range of $2.13 to $8.44.

GuruFocus assigned a rating of 7 out of 10 to the company's financial strength and a rating of 3 out of 10 to its profitability.

One sell-side analyst on Wall Street recommends a buy rating with a target price of $8.50 per share for this stock.

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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