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Chicago, IL – January 6, 2026 – Stocks in this week’s article are Allied Gold Corp. AAUC, Alcoa Corp. AA, Star Bulk Carriers SBLK and PHINIA Inc. PHIN.
U.S. equities ended 2025 on a strong note, with the S&P 500 rising about 16%, but the outlook is turning complex. Geopolitical risks are back in focus after President Donald Trump announced temporary U.S. control over Venezuela, raising concerns about instability in a key oil-producing nation.
At the same time, investors are bracing for policy uncertainty, including a Supreme Court ruling on Trump’s tariffs and the appointment of a new Federal Reserve chair. With earnings season approaching and key employment data due later this week, volatility could increase. While the Fed cut rates three times in 2025 to support a weakening labor market, inflation remains above target, leaving the path for 2026 policy uncertain.
In an environment shaped by policy uncertainty, geopolitical risk and unclear rate direction, value investing offers stability. Investors should focus on companies with strong fundamentals, reasonable valuations and durable cash flows, which can help investors manage volatility better.
One of the most common valuation metrics to pick undervalued stocks with solid upside potential is the P/E ratio. However, there’s another interesting ratio that you can consider for ferreting out attractively valued stocks. And that is earnings yield. One could invest in high earnings yield stocks like Allied Gold Corp.,Alcoa Corp., Star Bulk Carriers and PHINIA Inc. to fetch handsome long-term rewards.
Earnings yield is useful for investors concerned about the rate of return on investment. This metric, expressed in percentage, is calculated as annual earnings per share (EPS) divided by market price. This metric measures the anticipated yield (or return) from earnings for each dollar invested in a stock today. While comparing stocks, if other factors are similar, the ones with higher earnings yield are considered undervalued, while those with lower earnings yield are seen as overpriced.
While earnings yield is nothing but the reciprocal of the P/E ratio, it is a little more illuminating than the traditional P/E ratio, as it also facilitates the comparison of stocks with fixed-income securities. Investors often compare the earnings yield of a stock to the prevailing interest rates, such as the current 10-year Treasury yield, to get a sense of the return on investment it offers compared to virtually risk-free returns.
If the yield on a stock is lower than the 10-year Treasury yield, it would be considered overvalued relative to bonds. Conversely, if the yield on the stock is higher, it would be considered undervalued. In this situation, investing in the stock market would be a better option for a value investor.
Here we highlight four of the 46 stocks that qualified the screening:
Allied Gold is a Canada-based gold producer, with operations spread across Côte d’Ivoire, Mali and Ethiopia. The Zacks Consensus Estimate for AAUC’s 2026 sales and earnings implies year-over-year growth of 45% and 323%, respectively. EPS estimates for 2026 have moved up by 85 cents over the past 30 days. Allied Gold currently sports a Zacks Rank #1 and has a Value Score of B.
Alcoa, headquartered in Pittsburgh, produces and sells bauxite, alumina, and aluminum products. The Zacks Consensus Estimate for AA’s 2026 sales and earnings implies year-over-year growth of 7% and 29%, respectively. EPS estimates for 2026 have moved up by $1.03 over the past 30 days. Alcoa currently sports a Zacks Rank #1 and has a Value Score of B.
Star Bulk is a global shipping company—based in Athens— providing worldwide seaborne transportation solutions in the dry bulk sector. The Zacks Consensus Estimate for SBLK’s 2026 sales and earnings implies year-over-year growth of 19% and 224%, respectively. EPS estimates for 2026 have moved up by 61 cents over the past 60 days. Star Bulk currently sports a Zacks Rank #1 and has a Value Score of A.
PHINIA, headquartered in Michigan, is a leader in premium fuel systems, electrical systems, and aftermarket solutions for the automotive industry. The Zacks Consensus Estimate for PHIN’s 2026 sales and earnings implies year-over-year growth of 2% and 15%, respectively. EPS estimates for 2026 have moved up by 52 cents over the past seven days. PHINIA currently sports a Zacks Rank #1 and has a Value Score of A.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2811828/4-high-earnings-yield-value-stocks-to-own-amid-market-uncertainty
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Contact: Jim Giaquinto
Company: Zacks.com
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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This article originally published on Zacks Investment Research (zacks.com).
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