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Tuesday, July 3, 2012
4 Mid Cap Consumer Stocks Commanding Strong Profits
Mid cap companies are an interesting investment: they offer some of the growth potential of smaller cap companies, yet they can lack some of the stability of larger cap alternatives. Today we focused on mid cap companies in the consumer space that have records of consistently returning profits to shareholders, and that have gained analyst recommendations. Keeping these ideas in mind, we ran a screen.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.Return on Assets [ROA] illustrates how much a company is generating in
... Read the rest at SeekingAlpha.com
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