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Zacks.com featured highlights: CVR Refining, Korea Electric Power, Owens-Illinois, BG Staffing and Banco Bilbao Vizcaya Argentaria

For Immediate Release

Chicago, IL – June 24, 2016 - Stocks in this week’s article include: CVR Refining, LP (CVRR), Korea Electric Power Corp. (KEP), Owens-Illinois Inc. (OI), BG Staffing, Inc. (BGSF) and Banco Bilbao Vizcaya Argentaria, S.A. (BBVA).

Screen of the Week of Zacks Investment Research:

5 High Earnings Yield Stocks to Buy Now

Investors often use P/E ratio and other valuation metrics while picking undervalued stocks with solid upside potential. However, its inverse, the Earnings Yield, is more useful for investors who play in both stocks and bonds as P/E ratio cannot be used to compare stocks with fixed income securities.

Earnings yield is calculated as (Annual Earnings per Share/Market Price) x 100. Other things remaining constant, a stock with a higher earnings yield has the potential to provide comparatively greater returns.

Often, earnings yield is used to compare the performance of a market index with the 10-year Treasury yield. For instance, when the yield of the market index is more than the 10-year Treasury yield, stocks can be considered as undervalued than bonds. In such a circumstance, investing in the stock market would be a better option for a value investor.

However, you need to keep in mind that T-bills are risk free. 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 stock market.

The Winning Strategy

We have set Earnings Yield greater than 10% as our primary screening criterion, but it alone cannot be used for selecting 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 $5.00.

Zacks Rank less than 3: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) generally outperform their peers in any type of market environment.

Here are five of the 15 stocks that made it through the screen:

CVR Refining, LP (CVRR) is engaged in the refining of petroleum primarily in the U.S. The company carries a Zacks Rank #2. Its expected EPS growth rate for 3–5 years is 18.10%.

Korea Electric Power Corp. (KEP) is an integrated electric utility engaged in the generation, transmission, distribution of electricity and development of electric power resources in South Korea. This Rank #2 stock has an expected EPS growth rate of 25% for the next 3–5 years.

Owens-Illinois Inc. (OI) along with its subsidiaries is presently the largest manufacturer of glass containers in the world. The company carries a Zacks Rank #1 and its expected EPS growth rate for the next 3–5 years is 10.70%.

BG Staffing, Inc. (BGSF) provides staffing services to a variety of industries through its various divisions. The company currently carries a Zacks Rank #1. Its expected EPS growth rate for 3–5 years is pegged at 20%.

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is engaged in a wide variety of banking, financial and related activities in Spain. This Rank #2 company has an expected EPS growth rate of 20.3% 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

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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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CVR REFINING LP (CVRR): Free Stock Analysis Report
 
KOREA ELEC PWR (KEP): Free Stock Analysis Report
 
OWENS-ILLINOIS (OI): Free Stock Analysis Report
 
BG STAFFING INC (BGSF): Free Stock Analysis Report
 
BANCO BILBAO VZ (BBVA): Free Stock Analysis Report
 
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