Earnings yield is defined as Earnings per Share (EPS) divided by the stock price. This ratio is used by investors to compare companies and find undervalued stocks.
For example, if Stock A is trading at $100 and it’s EPS over the last twelve months is $10.00, then the yield of the stock is 10 percent (i.e., $10 / $100).
Now, compare that to Stock B that is trading at $100, but it’s EPS over the last twelve months is $5.00, meaning, a yield of 5 percent. Which one is the better value?
The obvious answer (based on this information only), would be Stock A. Every dollar invested in Stock A is generating EPS of 10 cents, where as Stock B is only generating 5 cents of EPS per dollar invested.
As you can see, the earnings yield of a stock makes it easier to compare companies and find undervalued stocks.
Using the DiscoverCI Stock Screener, we scan for stocks daily that have a great earnings yield, and are growing operations.
Our screen was built using the following criteria:
The list is sorted by earnings yield from high to low, and our analysis is updated daily.
We update this list daily. Last updated: December 9th, 2019
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