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For Immediate Release
Chicago, IL – November 16, 2021 – Stocks in this week’s article are Seagate Technology Holdings PLC STX, Best Buy Co., Inc. BBY, KLA Corp. KLAC, CBRE Group, Inc. CBRE, and Rockwell Automation, Inc. ROK.
5 High ROE Stocks to Buy as Inflation Snaps Winning Streak
The U.S. equity market lost its winning streak over the past week as inflation hit its highest point in more than 30 years, with the consumer price index up 6.2% year over year in October – the most since December 1990. The stock market rally, which was perhaps fueled by a healthy corporate earnings season and the Fed tapering decision amid the backdrop of an improving economy, was snapped by high prices of essential consumer items.
Although the inflationary pressure is widely viewed as temporary and largely induced by pandemic-specific issues, it continued to reverberate through markets and might force the Fed to kick start the tapering more quickly than it had signaled. Nevertheless, secular growth drivers are expected to fuel growth in the long term.
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, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios like return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1827719/5-high-roe-stocks-to-buy-as-inflation-snaps-winning-streak
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.
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Zacks‘ Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create „the world’s first trillionaires.“ Zacks‘ urgent special report reveals 3 AI picks investors need to know about today.
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Best Buy Co., Inc. (BBY): Free Stock Analysis Report
Seagate Technology Holdings PLC (STX): Free Stock Analysis Report
KLA Corporation (KLAC): Free Stock Analysis Report
Rockwell Automation, Inc. (ROK): Free Stock Analysis Report
CBRE Group, Inc. (CBRE): Free Stock Analysis Report
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