ROE or return on equity shows the return generated on a shareholder’s or stockholder’s equity, the book value or the accounting value of shareholder’s or stockholder’s equity. ROE is thought to be the “mother” of all ratios as a company can only generate shareholder value when the ROE rises above its cost of equity capital. Three stocks to look at for ROE right now are Micron Technology, Inc. (NASDAQ:MU), Companhia Energetica Minas Gerais (ADR) (NYSE:CIG), and MGIC Investment Corp. (NYSE:MTG).
Micron Technology, Inc. (NASDAQ:MU) has kept its return on equity at 31.95% over 12 months now, which is higher than the industry average reported by Reuters. The average ratio for the industry is at -55.04%, with the sector’s best figure at 9.90%. This stock is up +1.73%, hovering between $17.52 and $18.33; it has reached to $18.19.
Companhia Energetica Minas Gerais (ADR) (NYSE:CIG) has an ROE of 26.23% over the last 12 months, which is higher than Reuters says for the industry average. This average is at 12.29% for the ratio, with the sector at 19.96% for its best number. The stock is up +5.02% to be $2.72, with its range being between $2.56 and $2.75. The year’s high was at 5.35 (which was recorded on May 12 of this year), with its low for the year so far at 2.52. Its volatility is at 48.41.
The third stock to discuss is MGIC Investment Corp. (NYSE:MTG), which has had a return on equity that is 36.24%, which is higher than the industry average of 7.85%. The sector average is at 20.65, Reuters has recorded. The stock was at last close at $10.82, with its opening price of $10.76, with a loss of -0.82%. During the last trading session, the shares volume was at 3.04 million, which was under the average volume of 5.00 million shares.