|
|
|
|
|||||
|
|
|
Chicago, IL – July 31, 2025 – Stocks in this week’s article are The Walt Disney Co. DIS, TE Connectivity plc TEL, Fortinet, Inc. FTNT, Banco Bilbao Vizcaya Argentaria, S.A. BBVA and ON Semiconductor Corp. ON.
Over the past couple of days, the broader equity market seemed to have hit the brakes after a winning run last week, whereby it attained uninterrupted record highs buoyed by strong quarterly earnings performance from hitherto-reported firms across all sectors. However, a stalemate in tariff-related negotiations with China forced the markets to retreat from the peaks, as no clear indications came from the White House regarding a potential extension of a pause on higher tariffs that is set to expire Aug. 12.
Moreover, uncertainty regarding probable interest rate cuts by the Federal Reserve gained steam with the policy meeting scheduled to take place later today. Investors now await further clarity on the Fed's monetary policy, with the central bank likely to keep its benchmark unchanged at a range of 4.25% to 4.5%.
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, such as return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. The Walt Disney Co., TE Connectivity plc, Fortinet, Inc., Banco Bilbao Vizcaya Argentaria, S.A. and ON Semiconductor Corp. are some of the stocks with high ROE to profit from.
ROE = Net Income/Shareholders' Equity
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify companies that diligently deploy cash for higher returns.
Moreover, ROE is often used to compare the profitability of a company with other firms in the industry — the higher, the better. It measures how well a company is multiplying its profits without investing new equity capital and portrays management's efficiency in rewarding shareholders with attractive risk-adjusted returns.
Here are five of the 12 stocks that qualified the screening:
Walt Disney: Burbank, CA-based Walt Disney has assets that span movies, television shows and theme parks. This leading diversified international family entertainment and media enterprise operates through three business segments — Entertainment, Sports and Experiences.
The company has a long-term earnings growth expectation of 11.8% and delivered a trailing four-quarter earnings surprise of 16.4%, on average. It has a VGM Score of B. Walt Disney carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
TE Connectivity: Based in Galway, Ireland, TE Connectivity is a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries, including automotive, aerospace, defense, energy and medical. With operations in more than 130 countries, TE Connectivity focuses on emerging technologies such as 5G, electric vehicles, industrial automation and smart cities to position itself at the forefront of connectivity advancements.
TE Connectivity sports a Zacks Rank #1. The company has a long-term earnings growth expectation of 9.8% and delivered a trailing four-quarter earnings surprise of 4.9%, on average. It has a VGM Score of B.
Fortinet: Headquartered in Sunnyvale, CA, Fortinet is a provider of network security appliances and Unified Threat Management network security solutions to enterprises, service providers and government entities worldwide. Its solutions are designed to integrate multiple levels of security protection, including firewall, virtual private networking, antivirus, intrusion prevention, web filtering, anti-spam and wide area network acceleration.
The company has a long-term earnings growth expectation of 13.4% and delivered a trailing four-quarter earnings surprise of 23.8%, on average. Fortinet carries a Zacks Rank #2.
Banco Bilbao: Headquartered in Bilbao, Spain, Banco Bilbao provides retail banking, wholesale banking and asset management services primarily in Spain, Mexico, Turkey, the Rest of Europe, South America, the United States and Asia.
The company has a long-term earnings growth expectation of 6.9% and delivered a trailing four-quarter earnings surprise of 6.3%, on average. Banco Bilbao sports a Zacks Rank #1.
ON Semiconductor: Phoenix, AZ-based onsemi is an original equipment manufacturer of a broad range of discrete and embedded semiconductor components. The company has a well-diversified business. onsemi generates a significant percentage of revenues from the computing, consumer, industrial, communications and automotive markets.
The stock has a long-term earnings growth expectation of 5.3% and delivered a trailing four-quarter earnings surprise of 2.8%, on average. onsemi carries a Zacks Rank #2.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
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.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2639122/5-high-roe-stocks-to-buy-as-markets-retreat-on-china-tariff-stalemate
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.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: [email protected]
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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/performancefor information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 30 min |
Netflix Wants To Be The Next Disney. It's A Big World After All As Kingdom Expands.
DIS
Investor's Business Daily
|
| 1 hour | |
| 2 hours | |
| 4 hours | |
| 4 hours | |
| Jul-31 | |
| Jul-31 | |
| Jul-31 | |
| Jul-31 | |
| Jul-31 | |
| Jul-31 | |
| Jul-31 | |
| Jul-31 | |
| Jul-31 | |
| Jul-31 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite