Zacks.com featured highlights include: JAKKS Pacific, Party City Holdco, La-Z-Boy and Tempur Sealy

For Immediate Release

Chicago, IL – November 23, 2021 – Stocks in this week’s article are JAKKS Pacific, Inc. JAKK, Party City Holdco Inc. PRTY, La-Z-Boy Inc. LZB and Tempur Sealy International, Inc. TPX.

4 Hot High Earnings Yield Picks to Pep Up Your Portfolio

Earnings Yield may be a simple yet effective metric to use for investors with exposure to stocks as well as bonds. The ratio is the inverse of the price-to-earnings (P/E) ratio, which is commonly applied to find undervalued stocks. However, when one looks to compare stocks with fixed income securities or the market, earnings yield is a more appropriate ratio.

Earnings Yield is measured as (Annual Earnings per Share/Market Price) x 100. While comparing similar stocks, the one with higher earnings yield is more likely to provide better returns, with other factors remaining constant.

Earnings Yield can be used to compare the performance of a market index with the 10-year Treasury yield. When the yield of the market index is more than the 10-year Treasury yield, stocks can be considered as undervalued in comparison to bonds and vice versa. In such a situation, for value investors, investing in the stock market may be a better option than the bond market.

However, it is important to remember that T-bills are risk free, while stock investments come with a caveat. It would be a good idea to add a risk premium to the Treasury yield while comparing it with earnings yield of a stock or the overall market.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1830388/4-hot-high-earnings-yield-picks-to-pep-up-your-portfolio

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JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report
 
Tempur Sealy International, Inc. (TPX) : Free Stock Analysis Report
 
LaZBoy Incorporated (LZB) : Free Stock Analysis Report
 
Party City Holdco Inc. (PRTY) : Free Stock Analysis Report
 
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