Get Premium to unlock powerful stock data

4 Stocks With High Earnings Returns

These companies' earnings return more the double the monthly spot rate on 20-year high-quality market corporate bonds

Author's Avatar
Alberto Abaterusso
Oct 15, 2021

Summary

  • OneMain Holdings, Brunswick, Pinnacle Financial Partners and Braskem could be high-return investments.
  • Wall Street recommends these stocks.
Article's Main Image

Selecting stocks whose earnings returns are more than double the monthly spot rate of 20-year high-quality market corporate bonds provides more opportunities to unearth high-return investments. The investment-grade bonds represent corporate loans issued by triple-A, double-A and single-A-rated companies.

Since these bonds are offering a monthly spot rate of 3% as of the time of writing, the following four stocks could be of interest to investors as their earnings returns are more than 6% at price-earnings ratios of less than 16.7.

Braskem

Shares of Braskem SA (

BAK, Financial) closed at $20.97 on Thursday for a market capitalization of about $8.46 billion.

The Brazilian thermoplastic resins producer offers an earnings return of 21% and has a price-earnings ratio of 4.77.

The share price has risen 178% over the past year, determining a 52-week range of $7.39 to $26.93.

1449048169143865344.png

GuruFocus assigned a rating of 4 out of 10 for the company's financial strength and a rating of 5 out of 10 for its profitability.

Wall Street issued a median recommendation rating of overweight with an average target price of $27.80.

Brunswick

Shares of Brunswick Corp. (

BC, Financial) closed at $99.93 on Thursday for a market capitalization of $7.82 billion.

Based in Mettawa, Illinois, the company is a designer and manufacturer of outboard, sterndrive and inboard engines as well as engine parts and consumables under the Mercury Marine, Mercury, Mercury MerCruiser, Mariner, Mercury Racing and Mercury Diesel brands. The company also provides sport boats and cruisers. Its stock offers an earnings return of 7.30% and a price-earnings ratio of 13.69.

The stock has risen 57.50% over the past year for a 52-week range of $60.47 to $117.62.

1449048174437076992.png

GuruFocus assigned a rating of 6 out of 10 for the company's financial strength and a rating of 7 out of 10 for its profitability.

Wall Street issued a median recommendation rating of overweight with an average target price of $122.07.

Pinnacle Financial Partners

Shares of Pinnacle Financial Partners Inc. (

PNFP, Financial) closed at $102.13 on Thursday for a market capitalization of $7.71 billion.

The Nashville, Tennessee-based regional bank offers an earnings return of 6.4% and has a price-earnings ratio of 15.66.

The stock has risen 155.1% over the past year, determining a 52-week range of $38.75 to $103.90.

1449048179273109504.png

GuruFocus assigned a rating of 3 out of 10 for the company's financial strength and a rating of 6 out of 10 for its profitability.

Wall Street issued a median recommendation rating of buy with an average target price of $104.60.

OneMain Holdings

Shares of OneMain Holdings Inc. (

OMF, Financial) closed at $58.09 on Thursday for a market capitalization of $7.79 billion.

The Evansville, Indiana-based provider of consumer finance and insurance products and services offers an earnings return of 17.2% and has a price-earnings ratio of 5.80.

The stock has increased by 65.42% over the past year, determining a 52-week range of $34.24 to $63.19.

1449048184151085056.png

GuruFocus assigned a rating of 2 out of 10 for the company's financial strength and a rating of 5 out of 10 for its profitability.

Wall Street issued a median recommendation rating of buy with an average target price of $72.43.

Become a Premium Member to See This: (Free Trial):

» Take a Free Trial of Premium Membership

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

Disclosures

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
The views of this author are solely their own opinion and are not endorsed or guaranteed by GuruFocus.com
Rating:
0 / 5 (0 votes)

Please Login to leave a comment