Zacks.com featured expert Kevin Matras highlights: Actavis, Aspen Insurance, Aegean Marine, Trinity Industries and United Rentals PR Newswire CHICAGO, Jan. 15, 2014 CHICAGO, Jan. 15, 2014 /PRNewswire/ -- Stocks in this week's article include: Actavis (NYSE: ACT – Free Report), Aspen Insurance (NYSE: AHL – Free Report), Aegean Marine (NYSE: ANW – Free Report), Trinity Industries (NYSE: TRN – Free Report) and United Rentals (NYSE: URI – Free Report). Kevin Matras talks about a stock's earnings yield and how to use it. (Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO) Screen of the Week written by Kevin Matras of Zacks Investment Research: A stock's Earnings Yield measures just that, the anticipated yield (or return) an investment in a stock could give you based on the earnings and the price paid for the stock. The most common way people will use this ratio is to compare it to other stocks and to compare the yields to the 10 Year T-Bill. Conventional wisdom has it that if the yield on the stock market (S&P 500 for example) is lower than the yield on the 10 Year Treasury, then stocks might be considered overvalued. If the yield on the S&P 500 is greater than the 10 Year T-Bill, stocks would be considered undervalued. The theory behind this is that Bonds and Stocks are competing for investors' dollars. And to attract investment interest in stocks, a higher yield needs to be paid to the stock investor for the extra risk he's assuming compared to the virtual risk-free investment offered in US backed Treasuries. If earnings go up, the yield goes up. If earnings go down, so does the yield. Prices also affect the yield, but they move inversely. If Prices go up, the yield goes down. And if prices go down, the yield goes up. Currently, the earnings yield for the S&P is 6.35%, compared to the 10 Year Treasury of 2.84%. So stocks are still the more attractive investment, assuming you're ok with the risk that comes along with it. 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Click here for your free subscription to Profit from the Pros. Get the full Report on ACT –FREE Get the full Report on AHL – FREE Get the full Report on ANW – FREE Get the full Report on TRN – FREE Get the full Report on URI – FREE Follow us on Twitter: http://twitter.com/zacksresearch Join us on Facebook: http://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@example.com Visit: 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. 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Zacks.com featured expert Kevin Matras highlights: Actavis, Aspen Insurance, Aegean Marine, Trinity Industries and United
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