Profit-Efficient Top Picks: Marubeni (MARUY) and 6 Other Strong Buy Stocks
The stock market has held its ground in June after a furious rally off the April lows, making it difficult to predict what will shake the Nasdaq and S&P 500 out of their recent holding patterns until the start of the second quarter earnings season in mid-July. Fortunately, as long as trade war progress continues, inflation remains in check, and corporate earnings grow, the bullish backdrop appears to remain intact.
Investors must stay constantly exposed to the market and continue buying stocks even if broader sentiment turns bearish. A good starting point for investors looking to buy stocks in June is to find companies that boast improving earnings outlooks to help earn a Zacks Rank #1 (Strong Buy) that are also efficiently generating profits.
Return on Equity (ROE) is a vital metric that helps investors understand if a firm’s executives are creating assets with investors’ cash or burning it. ROE shows a company’s ability to turn assets into profits, measuring the profits made for each dollar of shareholder equity. A high ROE indicates that a company is efficiently using its resources to generate profits for shareholders.
Today’s screen focuses on companies with a Zacks Rank equal to 1, a price greater than or equal to $5, a Price/Sales Ratio less than or equal to 1, a % (Broker) Rating Strong Buy equal to 100%, and an ROE greater than or equal to 10%. Here is one of the seven stocks that made it through today’s screen:
Marubeni (MARUY) is a Japanese trading and investment conglomerate that trades OTC in the U.S. It imports, exports, and trades a wide range of products across global markets, including food, chemicals, energy, metals, and machinery. The company also invests in various industries, including real estate, power generation, and infrastructure projects. Additionally, Marubeni provides services such as finance, logistics, and resource development, operating through a vast network in nearly 70 countries.
MARUY stock has ripped 250% higher in the past 10 years, outperforming the Zacks Conglomerates sector’s sideways movement and the S&P 500’s 200% climb. The stock recently hit all-time highs and is attempting to break meaningfully above a trading range it’s been stuck in for several years. Despite its outperformance and charge to record highs, Marubeni trades at a 35% discount to its sector and 11% below its highs at 10.6X forward earnings.
Marubeni’s ROE of 13.5% crushes its highly-ranked industry’s 3.13% average. On top of that, its 2.71% dividend yield is a great bonus for a stock that has easily beaten the benchmark over the last decade.
