A Trio of Stocks With High Returns on Equity

These businesses have been very efficient in generating profits

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Jun 26, 2022
Summary
  • Apple, Meta Platforms and Nvidia have higher returns on equity ratios than most of their peers.
  • Wall Street also likes these stocks.
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When a company's return on equity ratio is superior to most of its competitors, it generally indicates the company has been very efficient in generating profits. Thus, investors may want to consider the following stocks, since they are performing better than most of their peer group companies in terms of a higher ROE ratio.

Apple

The first stock investors could be interested in is Apple Inc. (

AAPL, Financial), a Cupertino, California-based manufacturer of smartphones, personal computers, tablets, wearables and accessories worldwide.

Apple has a ROE ratio of 143.60% versus the industry median of 7.35%, ranking higher than 99.7% of 2,316 companies that are operating in the hardware industry.

The share price was $141.66 at close on Friday, up 5.10% year over year, for a market capitalization of $2.29 trillion and a 52-week range of $129.04 to $182.94.

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The stock has a price-earnings ratio of 23 and a price-book ratio of 34.07.

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

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $186.26 per share.

Meta Platforms

The second stock investors could be interested in is Meta Platforms Inc. (

META, Financial), a Menlo Park, California-based operator of social media platforms like Facebook, Instagram and WhatsApp.

Meta Platforms has a ROE ratio of 24.07% versus the industry median of 1.71%, ranking higher than 88.11% of the 572 companies that are operating in the interactive media industry.

The share price has dropped by 52.15% over the past year to trade at $170.16 at close on Friday for a market capitalization of $460.51 billion and a 52-week range of $154.25 to $384.33.

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The stock has a price-earnings ratio of 12.87 and a price-book ratio of 3.75.

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

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $283.54 per share.

Nvidia

The third stock investors may be interested in is Nvidia Corp. (

NVDA, Financial), a Santa Clara, California-based producer of graphics processing units and system-on-chip units for consumer electronics, computer hardware, semiconductor and video game industries.

Nvidia has a ROE ratio of 24.45% versus the industry median of 11.52%, ranking it higher than 93.6% of the 890 companies that operate in the semiconductors industry.

The share price has decreased by 14.31% over the past year to close at $171.26 on Friday, determining a market capitalization of $428.15 billion and a 52-week range of $153.28 to $346.47.

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The stock has a price-earnings ratio of 45.91 and a price-book ratio of 16.29.

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

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $256.78 per share.

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Disclosures

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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