Ross Stores, Broadcom Among Top Stocks with High ROE

Investors seek 'cash cow' stocks with attractive efficiency ratios amid market volatility.

Apr. 1, 2026 at 10:44am

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As the broader equity markets face volatility due to the ongoing Iran-Israel conflict, investors are looking to 'cash cow' stocks with high return on equity (ROE) to generate attractive risk-adjusted returns. Zacks Equity Research has highlighted five such stocks - Ross Stores, Globe Life, Broadcom, Corning, and Constellation Brands - that have delivered strong earnings and possess a high ROE.

Why it matters

A high ROE indicates a company's ability to efficiently deploy cash to generate profits, making it an attractive metric for investors seeking stability in uncertain market conditions. These 'cash cow' stocks can provide a buffer against market volatility.

The details

The five stocks highlighted - Ross Stores, Globe Life, Broadcom, Corning, and Constellation Brands - have delivered strong earnings surprises in recent quarters and possess long-term earnings growth expectations ranging from 10% to 48.6%. They also have Zacks Rank #1 or #2, indicating that they are well-positioned to outperform the market.

  • The broader equity markets have faced a steady downtrend over the past few days due to surging oil prices amid the Iran-Israel conflict.
  • President Trump has extended the deadline to initiate a deadly attack on Iran's energy infrastructure to April 6.

The players

Ross Stores, Inc.

An off-price retailer of apparel and home accessories, offering in-season, branded and designer merchandise at 20% to 60% below regular prices.

Globe Life Inc.

A holding company for a group of insurance companies that primarily market individual life and supplemental health insurance to lower-middle to middle-income households.

Broadcom Inc.

A semiconductor solutions provider for enterprise and data center networking, home connectivity, set-top boxes, broadband access, and other applications.

Corning Inc.

A glass technology company that produces advanced glass substrates used in a wide range of applications across various markets.

Constellation Brands, Inc.

A producer and marketer of beer, wine, and spirits, with a strong portfolio of high-quality brands including Corona, Modelo Especial, and SVEDKA Vodka.

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What’s next

Investors will be closely monitoring the developments in the Iran-Israel conflict and any potential diplomatic efforts to resolve the crisis, as this could have a significant impact on the broader equity markets.

The takeaway

In the face of market volatility, investors can benefit from identifying 'cash cow' stocks with high ROE, as these companies have demonstrated the ability to efficiently deploy capital and generate attractive risk-adjusted returns, providing a buffer against uncertain market conditions.