If you are hesitant whether to invest your money in stocks or bonds, one important financial parameter that can show you the right direction is earnings yield. It is the reciprocal of the price-to-earnings (P/E) ratio. This ratio can be used for identifying undervalued stocks. Also, this ratio can be effectively utilized for comparing stocks with the market or fixed income securities.
Pick These 4 Strong Earnings Yield Stocks For Higher Returns
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