A Trio of Stocks With High Earnings Returns

Earnings yields from these companies are more than double the monthly spot rate of 20-year high quality market corporate bonds

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Mar 04, 2022
Summary
  • Energy Transfer LP, TotalEnergies SE and Gilead Sciences Inc. have high earnings returns.
  • Wall Street also recommends these stocks.
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Looking for stocks whose earnings returns are more than double the monthly spot rate of 20-year high-quality market corporate bonds could provide more opportunities to discover 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 3.36% as of the time of writing, the following three stocks could be of interest to investors, as their earnings returns are more than 6.72% at price-earnings ratios of less than 14.88.

Energy Transfer LP

On Thursday, Energy Transfer LP (

ET, Financial) shares closed at $10.37 per unit, giving the stock a market cap of approximately $31.97 billion.

The Dallas, Texas-based oil and gas midstream operator offers an earnings yield of 18.38% and has a price-earnings ratio of 5.44.

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The stock has risen 27.24% over the past year for a 52-week range of $7.37 to $11.55.

GuruFocus assigned a rating of 4 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 buy with an average target price of $14.32 per share for the stock.

TotalEnergies SE

On Thursday, TotalEnergies SE (

TTE, Financial) shares closed at $50.93 per unit, giving the stock a market cap of approximately $133.52 billion.

The Paris, France-based integrated oil and gas operator offers an earnings yield of 11.05% and has a price-earnings ratio of 9.05.

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The stock has risen 3.52% over the past year, determining a 52-week range of $40.33 to $60.03.

GuruFocus assigned a rating of 6 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 overweight for the stock with an average target price of approximately $66.91 per share.

Gilead Sciences Inc.

On Thursday, Gilead Sciences Inc. (

GILD, Financial) shares closed at $61.71 per unit, giving it a market cap of approximately $77.38 billion.

The Foster City, California-based pharmaceutical drug manufacturer offers an earnings yield of 8% and has a price-earnings ratio of 12.52.

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The stock has declined by 4.50% over the past year, determining a 52-week range of $59.18 to $74.12.

GuruFocus assigned a rating of 5 out of 10 for the company's financial strength and a rating of 8 out of 10 for its profitability.

Wall Street issued a median recommendation rating of overweight with an average target price of $73.91 per share for the stock.

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I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure
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