![]() Broadcom carries a Zacks Rank #2.ĬBRE Group, Inc. The company has a trailing four-quarter average earnings surprise of 6.7% and long-term earnings growth expectation of 13.6%. Here are five of the 20 stocks that qualified the screen:īroadcom Limited AVGO: Broadcom is a premier designer, developer and global supplier of a broad range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products. Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment. The higher the ROA, the better it is for the company.ĥ-Year EPS Historical Growth greater than X-Industry: This criterion indicates that continued earnings momentum has translated into solid cash strength. Return on Assets (ROA) greater than X-Industry: This metric determines how much profit a company earns for every dollar of asset, which includes cash, accounts receivable, property, equipment, inventory and furniture. A lower ratio indicates that investors need to pay less for a better cash flow generating stock. Price/Cash Flow less than X-Industry: This metric measures how much investors pay for one dollar of free cash flow. In addition, we have taken a few other criteria into consideration to arrive at a winning strategy. In order to shortlist stocks that are cash rich with high ROE, we have added Cash Flow greater than $1 billion and ROE greater than X-Industry as our primary screening parameters. It measures how well a company is increasing its profits without investing new equity capital in the business and portrays management efficiency in rewarding shareholders with attractive risk-adjusted returns. Moreover, ROE is often used to compare the profitability of a company with other firms in the industry – the higher, the better. In other words, this financial metric enables investors to identify stocks that diligently deploy cash for higher returns. ROE helps investors distinguish between profit-generating companies from profit burners and is useful for determining the financial health of a company. A high ROE ensures that the company is reinvesting its cash at a high rate of return. However, singling out cash-rich stocks alone does not make for a solid investment proposition unless they are backed by attractive efficiency ratios like return on equity (ROE). As sublime tensions continue to raise an element of caution, investors are on the lookout for ‘cash cow’ stocks that will offer high returns. and North Korea regarding nuclear arsenal and prolonged standoff between China and India over sovereignty. ![]() These included constant conflict between the U.S. The equity markets remained relatively skittish over the last few days as a range of geopolitical issues took center stage.
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