In order to find high value investing opportunities, it’s important to watch for certain signals and catalysts that might indicate a given stock’s future performance.
One great indicator to watch for is a stock’s performance relative to the returns of 20-year high-quality corporate bonds, which are considered low-risk investments that offer consistent returns.
These 20-year bonds are considered a very low-risk investment as they represent corporate loans issued by triple-A, double-A, and single-A-rated companies, and they offer a 3.35% monthly spot rate.
The following three stocks are notable as they have produced returns 50% greater than that of these 20-year high-quality market corporate bonds.
Earnings Yield: Stocks to Watch
These three stocks are great options to add to your watchlist as they have outperformed the aforementioned 20-year bonds. Continue reading for more information regarding recent trading price and performance.
Universal Logistics Holdings Inc (NASDAQ: ULH), a Michigan-based transportation and logistics solutions provider, was recently trading at a price of $18.72, giving it a market capitalization of over $510 million.
ULH offers a price-earnings ratio of 14.08, earnings yield of 7.1%, and its share price has declined 25% over the past five years.
Recently, Wall Street analysts gave this stock an overweight rating and set a $28.33 price target.
Tegna Inc (NYSE: TGNA) is a Virginia-based media company with a market capitalization of $3.67 billion.
TGNA’s share price has dropped by about 6.2% in the past five years and was recently trading at $16.94. The company offers earnings return of 7.73%, a forward dividend yield of 1.65%, and a price-earnings ratio of 12.93.
TGNA has an overweight rating and has received a price target of $18.75 per share.
Alliance Data Systems
Alliance Data Systems Corp (NYSE: ADS) has a market capitalization of $4.71 billion and has dropped in price by 63% over the past five years. The company was recently trading at $102.16.
The Ohio-based marketing company grants a 2.47% forward dividend, a price-earnings ratio of 17.15, and a 5.84% earnings return.
Wall Street analysts granted this stock with an overweight rating and an average price target of $125.73 per share.
Article By: Connor Beam