For Immediate Release
Chicago, IL – May 6, 2026 – Stocks in this week’s article are Ross Stores, Inc. ROST, TE Connectivity plc TEL, Broadcom Inc. AVGO, Corning Inc. GLW and Arista Networks, Inc. ANET.
5 Stocks with High ROE to Buy as Markets Battle Intense Volatility
The broader equity markets witnessed intense volatility over the past few days as stalled negotiations for a U.S.-Iran peace deal and a fragile ceasefire between the two warring countries came under strain following reported drone and missile attacks by Iran on the UAE. This sent oil prices spiraling, fueling instability among investors.
A solid quarterly earnings performance by Apple spurred a sharp market rally to negate the losses to some extent. However, equity markets went downhill as President Trump scrapped plans to send a U.S. special envoy for peace talks in Pakistan. The continuation of the Iran blockade and restrictions in the Strait of Hormuz compounded the stock market misery, as oil prices went up steadily.
All these developments fueled intense volatility, with uncertainty being the order of the day. 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. Ross Stores, Inc., TE Connectivity plc, Broadcom Inc., Corning Inc. and Arista Networks, Inc. are some of the stocks with high ROE to profit from.
Why ROE?
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 20 stocks that qualified the screening:
Ross: Based in Dublin, CA, Ross is an off-price retailer of apparel and home accessories, offering in-season, branded and designer apparel, footwear, accessories and other home-related merchandise. Operating primarily in the United States, it targets middle-income households, keeping prices at generally 20% to 60% below the regular prices of most department and specialty stores.
The company has a long-term earnings growth expectation of 10% and delivered a trailing four-quarter earnings surprise of 6.2%, on average. Ross carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
TE Connectivity: Based in Galway, Ireland, TE Connectivity is a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries, including automotive, aerospace, defense, energy and medical. With operations in more than 130 countries, TE Connectivity focuses on emerging technologies such as 5G, electric vehicles, industrial automation and smart cities to position itself at the forefront of connectivity advancements.
The company has a long-term earnings growth expectation of 12.5%. It delivered a trailing four-quarter earnings surprise of 6%, on average. TE Connectivity carries a Zacks Rank #2.
Broadcom: Headquartered in San Jose, CA, Broadcom develops a broad range of semiconductor solutions for enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays.
The company has a long-term earnings growth expectation of 48.6%. It delivered a trailing four-quarter earnings surprise of 1.9%, on average. Broadcom currently carries a Zacks Rank #2.
Corning: New York-based Corning started out as a glass business that was reincorporated in 1936. The company has since developed its glass technologies to produce advanced glass substrates used in a wide range of applications across various markets. Corning’s competitive strength lies in its focus on innovation.
The company has a long-term earnings growth expectation of 22.1%. It delivered a trailing four-quarter earnings surprise of 2.4%, on average. Corning carries a Zacks Rank #2 at present.
Arista: Santa Clara, CA-based Arista is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company holds a leadership position in 100-gigabit Ethernet switching for the high-speed datacenter segment. It is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
The company has a long-term earnings growth expectation of 17.9%. It delivered a trailing four-quarter earnings surprise of 9%, on average. Arista carries a Zacks Rank #2.
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