Zacks.com featured highlights include: Mallinckrodt, Sony and Public Storage

For Immediate Release

Chicago, IL – October 22, 2019 - Stocks in this week’s article are Mallinckrodt plc MNK, Sony Corp. SNE and Public Storage PSA.

Top 3 ROE Stocks to Profit as Earnings Season Heats Up

The U.S. equity markets are widely anticipated to trade near all-time highs with expectations of solid quarterly results across the board as the earnings season gets heated up. With the Sino-U.S. trade relations nearing a historic deal to ease the tensions related to tariff war, the overall sentiments appear bullish. However, a slowdown in China is likely to be a dampener of sorts, hindering the smooth sail of the equity markets in general.

As investors employ a wait-and-see approach in a classic example of “backing and filling” in the market, they can benefit from ‘cash cow’ stocks that garner higher returns.

However, singling out cash-rich stocks alone do not make for a solid investment proposition unless these are backed by attractive efficiency ratios, like return on equity (ROE).  A high ROE ensures that the company is reinvesting its cash at a high rate of return.

Why ROE?

ROE = Net Income/Shareholders’ Equity

ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify stocks that diligently deploy cash for higher returns.

Moreover, ROE is often used to compare the profitability of a company with other firms in the industry — the higher, the better. It measures how well a company is multiplying its profits without investing new equity capital and portrays management’s efficiency in rewarding shareholders with attractive risk-adjusted returns.

For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/575324/top-3-roe-stocks-to-profit-as-earnings-season-heats-up

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Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Sony Corporation (SNE) : Free Stock Analysis Report
 
Mallinckrodt public limited company (MNK) : Free Stock Analysis Report
 
Public Storage (PSA) : Free Stock Analysis Report
 
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