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Chicago, IL – July 31, 2025 – Stocks in this week’s article are The Walt Disney Co. DIS, TE Connectivity plc TEL, Fortinet, Inc. FTNT, Banco Bilbao Vizcaya Argentaria, S.A. BBVA and ON Semiconductor Corp. ON.
Over the past couple of days, the broader equity market seemed to have hit the brakes after a winning run last week, whereby it attained uninterrupted record highs buoyed by strong quarterly earnings performance from hitherto-reported firms across all sectors. However, a stalemate in tariff-related negotiations with China forced the markets to retreat from the peaks, as no clear indications came from the White House regarding a potential extension of a pause on higher tariffs that is set to expire Aug. 12.
Moreover, uncertainty regarding probable interest rate cuts by the Federal Reserve gained steam with the policy meeting scheduled to take place later today. Investors now await further clarity on the Fed’s monetary policy, with the central bank likely to keep its benchmark unchanged at a range of 4.25% to 4.5%.
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, such as return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. The Walt Disney Co., TE Connectivity plc, Fortinet, Inc., Banco Bilbao Vizcaya Argentaria, S.A. and ON Semiconductor Corp. are some of the stocks with high ROE to profit from.
ROE = Net Income/Shareholders’ Equity
ROE 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 12 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.
