4 Non-Cyclical Stocks With High Earnings Yields

These companies may suit value investors

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Sep 08, 2022
Summary
  • Clearway Energy, Andersons, Lifevantage and Celularity have earnings yields topping the 20-year high-quality market corporate bond spot rate.
  • Joel Greenblatt calculates the earnings yield as the company's earnings before interest and taxes divided by its enterprise value.
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Investors may want to consider the following non-cyclical stocks as their earnings yields (as calculated by

Joel Greenblatt (Trades, Portfolio)'s method) are outperforming the 20-year high-quality market corporate bond spot rate of 4.85% as of the time of writing.

Greenblatt calculates the earnings yield as the company's earnings before interest and taxes (Ebit) divided by its enterprise value. This ratio represents a more reliable reference for the evaluation of non-cyclical stocks, whose earnings have little to no correlation with the business cycle (as the metric only looks at 12 months of business activity).

Clearway Energy

The first stock investors may want to consider is Clearway Energy Inc. (

CWEN.A, Financial), a Princeton, New Jersey-based renewable energy operator in the U.S. with a portfolio of approximately 5,000 net megawatts of installed wind and solar power projects and approximately 2,500 net megawatts of natural gas generation facilities.

The stock grants an earnings yield of 12.45% as of the June quarter. This stands significantly above the midpoint of the past 10-year historical earnings yield range of 1.44% to 13.78%. The earnings yield ranks better than 87.56% of 410 companies that are operating in the utilities - independent power producers industry.

The stock traded around $35.64 during regular hours on Thursday, giving it a market cap of $4.33 billion and a 52-week range of $27.83 to $38.65.

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Its price-earnings ratio is 7.63 and its price-book ratio is 1.83.

The stock granted a forward dividend yield of 4.1% as of the time of writing.

As of September, Clearway has a median recommendation rating of overweight with an average target price of $40.27 per share on Wall Street.

Andersons

The second stock investors may want to consider is Andersons Inc. (

ANDE, Financial), a Maumee, Ohio-based agricultural company with trade, renewable energy and fertilizer businesses in the U.S. and abroad.

The company grants an earnings yield of 8.62% as of the three months ended June 30. This stands well above the midpoint of the 10-year historical range of -2.77% to 18.74% and ranks higher than 70.72% of the 304 companies that are operating in the retail - defensive industry.

The stock traded at around $34.51 during regular hours on Thursday, giving it a market cap of $1.16 billion and a 52-week range of $28.13 to $59.

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Its price-earnings ratio is 9.02 and its price-book ratio is 1.

The stock granted a forward dividend yield of 2.1%.

As of September, Andersons has a median recommendation rating of overweight with an average target price of $52.50 per share on Wall Street.

Lifevantage

The third stock investors may want to consider is Lifevantage Corp. (

LFVN, Financial), a Lehi, Utah-based researcher, developer and distributor of nutrigenomic activators, dietary supplements and probiotics. The company also offers weight management, skin and hair care, bath and body and targeted relief products.

The company grants an earnings yield of 9.42% as of the second quarter, standing above the midpoint of the 10-year historical range of -30.04% to 25.82% and ranking better than 74.5% of 1,839 companies that are operating in the consumer packaged goods industry.

The stock traded around $3.87 during regular hours on Thursday, giving it a market cap of $47.71 million and a 52-week range of $3.59 to $7.87.

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Its price-earnings ratio is 15.84 and its price-sales ratio is 1.49.

The stock granted a forward dividend yield of 3.16%.

As of September, Lifevantage has one recommendation rating of buy with a target price of $7 per share on Wall Street.

Celularity

The fourth stock investors may want to consider is Celularity Inc. (

CELU, Financial), a Florham Park, New Jersey-based biotech developer of off-the-shelf placental-derived allogeneic cell treatments for cancer, immune and infectious diseases.

The company grants an earnings yield of 6.85% as of June, standing significantly above the midpoint of the 10-year historical range of -19.06% to 9.39% and ranking better than 81.81% of 1,561 companies that are operating in the biotechnology industry.

The stock traded around $2.60 during regular hours on Thursday, giving it a market cap of $358.08 million and a 52-week range of $2.55 to $13.18.

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Its price-earnings ratio is 12.11 and its price-sales ratio is 2.38.

Celularity does not pay a dividend.

As of September, the stock has a median recommendation rating of overweight with an average target price of $11.33 per share on Wall Street.

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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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