Zacks.com featured highlights include The Walt Disney, Leidos, Raymond James Financial, Cencora and Delta Air Lines

For Immediate ReleaseChicago, IL – January 17, 2025 – Stocks in this week’s article are The Walt Disney Co. DIS, Leidos Holdings, Inc. LDOS, Raymond James Financial, Inc. RJF, Cencora, Inc. COR and Delta Air Lines, Inc. DAL.Bet On 5 Stocks with High ROE as Markets Surge on Cooling InflationThe broader U.S. equity markets witnessed a solid uptrend yesterday as a better-than-expected inflation reading evoked positive sentiments that inflation is easing, albeit slowly. The Consumer Price Index (CPI) data for December revealed that Core CPI, which excludes volatile food and energy prices, rose 0.2% month over month and 3.2% year over year compared with broad-based expectations of 0.3% and 3.3% increase, respectively. This was the first decline in Core CPI from the past three months’ reading of 3.3%.Despite signs of decelerating inflationary pressures, the Federal Reserve is widely believed to have kept the interest rates steady in its next policy meeting scheduled to be held by the end of this month. As investors employ a wait-and-see approach in a classic example of “backing and filling” in the market, they can benefit from “cash cow” stocks that garner higher returns.However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios like return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. The Walt Disney Co., Leidos Holdings, Inc., Raymond James Financial, Inc., Cencora, Inc. and Delta Air Lines, Inc.  are some of the stocks with high ROE to profit from.Why ROE?ROE = Net Income/Shareholders’ EquityROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company. In other words, this financial metric enables investors to identify companies that diligently deploy cash for higher returns.Moreover, ROE is often used to compare the profitability of a company with other firms in the industry — the higher, the better. It measures how well a company is multiplying its profits without investing new equity capital and portrays management’s efficiency in rewarding shareholders with attractive risk-adjusted returns.Here are five of the 19 stocks that qualified the screening:Walt Disney: Burbank, CA-based Walt Disney has assets that span movies, television shows and theme parks. This leading diversified international family entertainment and media enterprise operates through three business segments — Entertainment, Sports and Experiences.The company has a long-term earnings growth expectation of 10.3% and delivered a trailing four-quarter earnings surprise of 13.6%, on average. It has a VGM Score of A. Walt Disney carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.Leidos: Delaware-based Leidos is a global science and technology leader serving the defense, intelligence, civil and health markets. Its core capabilities include providing solutions in cybersecurity, data analytics, enterprise IT modernization, operations and logistics, sensors, collection and phenomenology, software development and systems engineering.The company has a long-term earnings growth expectation of 14.8% and delivered a trailing four-quarter earnings surprise of 29.9%, on average. It has a VGM Score of A. Leidos carries a Zacks Rank #2.Raymond James: Based in St. Petersburg, FL, Raymond James is a diversified company that provides financial services mainly in the United States and Canada. The company has approximately 8,800 financial advisors with total client assets of $1.54 trillion.It has a long-term earnings growth expectation of 15.8% and delivered a trailing four-quarter earnings surprise of 7.8%, on average. It has a VGM Score of B. Raymond James carries a Zacks Rank #2.Cencora: Chesterbrook, PA-based Cencora is one of the world’s largest pharmaceutical services companies. It focuses on providing drug distribution and related services to reduce healthcare costs and improve patient outcomes.The company has a long-term earnings growth expectation of 10.4% and delivered a trailing four-quarter earnings surprise of 7%, on average. It has a VGM Score of A. Cencora carries a Zacks Rank #2.Delta Air: Atlanta-GA-based Delta Air is one of the four carriers that together account for 60% of the U.S. aviation market. It commands more than 17% of the domestic market and has hubs and market presence in Amsterdam, London-Heathrow, Mexico City, Paris-Charles de Gaulle and Seoul-Incheon.The company has a long-term earnings growth expectation of 11.2% and delivered a trailing four-quarter earnings surprise of 6.5%, on average. It has a VGM Score of A. Delta Air carries a Zacks Rank #2.You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial to the Research Wizard today.For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2398083/bet-on-5-stocks-with-high-roe-as-markets-surge-on-cooling-inflationZacks 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 GiaquintoCompany: Zacks.comPhone: 312-265-9268Email: pr@zacks.comVisit: https://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.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report Cencora, Inc. (COR): Free Stock Analysis Report Raymond James Financial, Inc. (RJF): Free Stock Analysis Report Leidos Holdings, Inc. (LDOS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks