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Top 3 Companies in the Communications Equipment Industry With the Highest Forward Earnings Yield (BBOX, ELX, ARRS)

Published on Fri, 09/20/2013 - 10:44
By Mallory Stone

Below are the three companies in the Communications Equipment industry with the highest forward earnings yields. Using projected earnings for the current fiscal year, the forward earnings yield is useful to compare a stock's return vs. owning a similar stock or other yield assets (e.g. bonds). Generally, the higher the earnings yield, the more undervalued the stock.

Black Box (NASDAQ:BBOX) is highest with forward earnings yield of 9.4%. Black Box Corporation provides technical network services and related products to businesses. The Company offers standard networking products through its catalog and its Web site. Black Box designs and builds custom products and operates subsidiaries throughout the world.

There is potential upside of 5.2% for shares of Black Box based on a current price of $29.46 and an average consensus analyst price target of $31.00. Black Box shares have support at the 50-day moving average (MA) of $28.18 and additional support at the 200-day MA of $25.40.

Following is Emulex (NYSE:ELX) with forward earnings yield of 8.6%.

Finishing up the top three is Arris Group (NASDAQ:ARRS), with forward earnings yield of 8.2%.

By Mallory Stone