Yearender: Five S&P 500 stocks that gave over 100% return on equity

 The S&P 500 Index or the Standards and Poor’s 500 Index comprises 500 large-cap public companies based on their market capitalization. These companies are generally less volatile. Here we discuss five S&P 500 companies that gave more than 100% return on equity (ROE) and over 15% growth in stock prices YTD. The ROE is calculated by dividing the net income by the total number of shareholders’ equity. It typically shows the company’s profitability.  

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Apple Inc. (NASDAQ: AAPL)  

ROE: 147.44%   

The Cupertino, California-based Apple Inc (NASDAQ: AAPL) manufactures consumer electronics products like personal computers and iPhones. It was founded in 1977.  

Its net sales were US$365 billion in the fiscal year ended Sept 25, 2021, compared to US$274 billion a year ago. The net income grew to US$94.68 billion compared to US$57.4 billion in the previous fiscal year.  The EPS diluted rose to US$5.61 from US$3.28 in FY 2020. 

The company reported cash and cash equivalents of US$34.94 billion as of Sept 25, 2021. 

Its market capitalization is US$2.9 trillion, the P/E ratio is 30.2, and the forward P/E one year is 29.32. The dividend yield is 0.51%, and the annualized dividend is US$0.88. 

The AAPL stock traded in the range of US$182.13 to US$116.21 in the last 52 weeks and closed at US$169.75 on Dec 20, 2021. 

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 Eli Lilly and Company (NYSE: LLY)  

ROE: 150.18% 

The Indianapolis, Indiana-based Eli Lilly develops drugs for oncology, endocrinology, immunology, and neuroscience-related problems.  

For the nine months ended Sept 30, 2021, the company reported revenue of US$20.3 billion against US$17.1 billion in the same period of 2020.  

It booked a net income of US$3.86 billion compared to US$4.08 billion a year ago. The earnings per share diluted were US$4.23 against US$4.47 in the same period a year ago. 

The company had cash and cash equivalents of US$3.79 billion as of Sept 30, 2021.   

Eli Lilly's market capitalization is US$252 billion, the P/E ratio is 40.16, and the forward P/E one year is 32.21. Its current dividend yield is 1.27%, and the annualized dividend is US$3.92. 

The LLY stock price moved in the range of US$283.90 to US$161.78 in the last 52 weeks. The stock closed at US$263.48, down 1.47% on Dec 20, 2021. 

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Oracle Corporation (NYSE: ORCL)  

ROE: 158.80% 

 This technology company is based in Austin, Texas. It provides enterprise resource planning software and data technology to clients. Oracle has a presence in over 175 countries, with more than 136,000 employees. 

For the six months ended Nov 30, 2021, Oracle posted revenue of US$20.09 billion compared to US$19.17 billion in the corresponding period of 2020.   

Its net income was US$1.21 billion or US$0.43 per share diluted compared to US$4.69 billion or US$1.53 per share diluted in the same period a year ago. 

It has a market capitalization of US$245 billion, a P/E ratio of 26.56, and a forward P/E one year of 22.08. Its current dividend yield is 1.32%, and the annualized dividend is US$1.28. 

The ORCL stock traded in the range of US$106.34 to US$59.74 in the last 52 weeks, and the stock closed at US$91.64 with a 5.15% decline on Dec 20, 2021. 

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AbbVie Inc. (NYSE: ABBV)

ROE: 188.25%

The North Chicago, Illinois-based company develops therapies for immunology and oncology-related problems. In May 2020, it acquired the healthcare company Allergen, which specializes in women’s health. It has approximately 50,000 employees.

The company earned net revenue of US$41.3 billion in the nine months ended Sept 30, 2021, compared to US$31.9 billion for the same period a year ago. 

It booked a net income of US$7.5 billion or US$4.19 per share diluted in the period, versus US$4.6 billion or US$2.77 per share diluted a year ago.  

 The cash and cash equivalents were US$12.18 billion as of Sept 30, 2021.  

AbbVie has a market capitalization of US$231 billion. Its P/E ratio is 31.16, and the forward P/E one year is 10.31. Its current dividend yield is 4.01%, and the annualized dividend is US$5.64. 

 The ABBV stock traded in the range of US$133.28 to US$101.55 in the last 52 weeks. Its stock closed at US$130.86 with a 1.03% gain on Dec 20, 2021. 

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Qualcomm Incorporated (NASDAQ: QCOM)  

ROE: 112.85%  

It develops smartphone chips and wireless technology. The San Diego, California-headquartered company also offers 5G network and wireless services to customers.  

For the fiscal year ended Sept 26, 2021, it reported revenue of US$33.57 billion, against US$23.53 billion a year ago. Its net income was US$9.04 billion or US$7.87 per share diluted, compared to US$5.2 billion or US$4.52 per share diluted in FY2020. 

 The company reported cash and cash equivalents of US$7.12 billion as of Sept 26, 2021, compared with US$6.7 billion as of Sept 27, 2020. Qualcomm’s current market capitalization is US$197 billion. It has a P/E ratio of 22.35, and a forward P/E one year of 18.50. Its current dividend yield is 1.54%, and the annualized dividend is US$2.72. 

QCOM stock traded in the range of US$192.68 to US$122.17 in the last 52 weeks and closed at US$176.67, down by 0.07% on December 20, 2021. 

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Bottomline 

 The S&P 500 index gained 22.20% YTD. The index saw two-digit growth despite coronavirus disruptions in 2021. However, investors must carefully analyze the stocks before investing.