Monday, June 18, 2012

4 Profitable Financial Stocks Analysts Love


Financial stocks can be risky investments, depending on the company's management. One way to hone in on well managed companies is to look for those companies that not only have strong track records of profitability, but ones that industry analysts also favor highly. We ran a screen with these ideas in mind, and we came up with a pretty interesting list.Return on Equity [ROE] is one way to identify great potential names relative to profitability. This ratio illustrates the percentage return on shareholder equity. As well, this metric segments the company into operational efficiency, asset use efficiency, and financial leverage. Why does this matter? Simply put, it allows investors to get a real picture of how the company is generating these returns and helps identify parts of the company that may be underperforming.The Operating Profit Margin is a profitability ratio that measures the effectiveness of the company's operating
... Read the rest at SeekingAlpha.com

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