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 4.80% as of the time of writing, the following stocks could be of interest to investors since their earnings returns are more than 9.6% and the price-earnings ratios are below 10.42.
Occidental Petroleum
On Monday, Occidental Petroleum Corp. (OXY, Financial) shares closed at $59.83 apiece, giving the stock a market cap of approximately $56.07 billion.
The Houston-based oil and gas producer offers an earnings yield of 11.55% and has a price-earnings ratio of 8.66.
The stock has risen 108.90% over the past year for a 52-week range of $21.62 to $74.04.
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 overweight with an average target price of $74.74 per share for the stock.
Warner Bros. Discovery
On Monday, Warner Bros. Discovery Inc. (WBD, Financial) shares closed at $14.03, giving the stock a market cap of approximately $34.05 billion.
Based in New York, Warner Bros. Discovery provides content across various distribution platforms in approximately 50 different languages worldwide. The stock offers an earnings yield of 14.39% and has a price-earnings ratio of 6.95.
The stock has dropped by 53.34% over the past year, determining a 52-week range of $13.72 to $31.88.
GuruFocus assigned a rating of 5 out of 10 for the company's financial strength and a rating of 9 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 $34.11 per share.
General Motors
On Monday, General Motors Co. (GM, Financial) shares closed at $32.28 per unit, giving it a market cap of approximately $47.07 billion.
The Detroit-based automaker offers an earnings yield of 18.18% and has a price-earnings ratio of 5.50.
The stock has decreased by 46.92% over the past year, determining a 52-week range of $32.15 to $67.21.
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 overweight with an average target price of $58.91 per share for the stock.
