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Zacks.com featured highlights: Volkswagen AG, Brookdale Senior Living, Web.com Group and ON Semiconductor

For Immediate Release

Chicago, IL – July 06, 2017 - Stocks in this week’s article include Volkswagen AG (OTCMKTS: VLKAY Free Report ), Brookdale Senior Living Inc. (NYSE: BKD Free Report ), Web.com Group, Inc. (NASDAQ: WEB Free Report ) and ON Semiconductor Corporation (NASDAQ: ON Free Report ).

Screen of the Week of Zacks Investment Research:

4 High-Earnings-Yield Stocks to Boost Your Portfolio

Earnings yield is an easy but useful ratio for investors putting their money into stocks or bonds. It is the reciprocal of the price-to-earnings (P/E) ratio and used to spot undervalued stocks. This ratio comes in handy for investors when they want to compare stocks with fixed income securities or the market.

Earnings yield is derived as (Annual Earnings per Share/Market Price) x 100. It can be used to compare a stock with other stocks as well as with fixed income securities. While comparing similar stocks, the one with the higher earnings yield should provide better returns.

This ratio can also be utilized for comparing the performance of a market index with the 10-year Treasury yield. When the yield of the market index exceeds the 10-year Treasury yield, stocks can be considered as undervalued in comparison to bonds. This implies that investing in the stock market is a better option for a value investor.

However, it is to be noted that T-bills are risk free, while investing in stocks always comes with a caveat. Hence, it would be a good idea to add a risk premium to the Treasury yield while comparing it with the earnings yield of a stock or the overall market.

The Winning Strategy

We have set earnings yield greater than 10% as our primary screening criterion, but it alone cannot be used for picking stocks that have the potential to generate solid returns. So, we have added the following parameters to the screen:

Estimated EPS growth for the next 12 months greater than or equal to the S&P 500 : This metric compares the 12-month forward EPS estimate with the 12-month actual EPS.

Average Daily Volume (20 Day) greater than or equal to 100,000 : High trading volume implies that a stock has adequate liquidity.

Current Price greater than or equal to $5.

Buy-Rated Stocks: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have been known to outperform peers in any type of market environment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Here are four of the 12 stocks that made it through the screen:

Volkswagen AG (OTCMKTS:VLKAY Free Report ) is an automobile manufacturer in Europe. This Zacks Rank #1 stock has an expected EPS growth rate of 17.5% for the next 3–5 years.

Brentwood, TN-based Brookdale Senior Living Inc. (NYSE: BKD Free Report ) is a leading owner and operator of senior living facilities throughout the United States. Currently, the company has a Zacks Rank #2 and an expected EPS growth rate of 16.5% for the next 3–5 years.

Web.com Group, Inc. (NASDAQ:WEB Free Report ) is a Jacksonville, FL-based provider of online marketing for small businesses. This Zacks Rank #2 stock has an expected EPS growth rate of 7.5% for the next 3–5 years.

Phoenix, AZ-based ON Semiconductor Corporation (NASDAQ: ON Free Report ) is engaged in manufacture and sale of semiconductor components for various electronic devices. Currently, the company has a Zacks Rank #1 and an expected EPS growth rate of 16.7% for the next 3–5 years.

You can get the rest of the stocks on this list by signing up now for a 2-week free trial to the Research Wizard stock picking and backtesting software. You can also create your own strategies and test them first before making investments.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today .

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance .

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Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don’t wait for the market to get better before you decide to do better. Start learning how to be a better trader today: https://at.zacks.com/?id=111

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Volkswagen AG (VLKAY): Free Stock Analysis Report
 
Brookdale Senior Living Inc. (BKD): Free Stock Analysis Report
 
Web.com Group, Inc. (WEB): Free Stock Analysis Report
 
ON Semiconductor Corporation (ON): Free Stock Analysis Report
 
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