Risk taker and wealth creation; 5 mid and small cap stocks with high ROE & ROCE
Business

Risk taker and wealth creation; 5 mid and small cap stocks with high ROE & ROCE

By Dan Neff

Companies which enjoy higher institutional interest & having institutional ownership of at least 3% are considered in this list.

Synopsis

At a time when bulls are in control of the street, caution is thrown out of the window. While it is very tough to control the urge to buy a stock in a bullish market, it would be better to apply some filters which are helpful in avoiding some mistakes. Refinitiv’s Stock Report Plus which lists stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or “strong buy”.

When valuations are high but sentiments are bullish, it would be better to add the word “ caution” to your portfolio. Now how does one do it ? By putting some quantitative parameters when making a decision to buy a stock. Every sector has a different operating matrix which has high correlation with returns companies in that industry are able to generate. For some industries like software,15 to 20 percent net margins would be normal. For others,

ETMarkets.com

11 mins read, Last Updated:

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Dan Neff