4 Value Stocks to Own as Oil Crosses $100 Per Barrel Amid US-Iran War

Geopolitical tensions in the Middle East remain elevated as the conflict between the United States and Iran shows little sign of easing. U.S. President Donald Trump stated that the war would end only if Iran agreed to an “unconditional surrender,” a demand which has been firmly rejected by Iran’s leadership. Iran is exchanging strikes with Israel and is carrying out retaliatory attacks on several Gulf countries, keeping the region on edge.

The situation has significantly disrupted global energy markets. With many oil tankers unable to pass through the strategic Strait of Hormuz, crude prices have surged above $100 per barrel for the first time in four years. The sharp rise in energy costs has intensified concerns that higher inflation and fuel prices could weigh on the U.S. economy.

Against this backdrop, investors will be closely watching the Consumer Price Index (CPI) data due later this week. Elevated geopolitical risks and rising oil prices are likely to keep stock markets volatile in the near term.

In such uncertain environments, value investing offers stability. Focusing on companies with solid fundamentals, reasonable valuations and durable cash flows can help investors manage market swings more effectively.

While the price-to-earnings (P/E) ratio remains one of the most widely used valuation metrics to identify undervalued stocks, another useful measure is earnings yield, which can also help uncover attractively priced investment opportunities. Adecoagro S.A. AGRO, Fortuna Mining Corp. FSM, National Energy Services Reunited Corp. NESR and Betterware de Mexico SAPI de CV BWMX are a few high earnings yield value stocks worth betting on.

The Strength of Earnings Yield

Expressed as a percentage, earnings yield is calculated as annual earnings per share (EPS) divided by the market price. This ratio measures the anticipated return from earnings for each dollar invested in a stock today.

When comparing stocks, those with higher earnings yields are generally considered undervalued, while those with lower yields are seen as overpriced. Unlike the traditional P/E ratio, earnings yield also facilitates comparisons with fixed-income securities. Investors often compare a stock's earnings yield to prevailing interest rates, such as the 10-year Treasury yield, to gauge the stock's return relative to virtually risk-free bonds.

If a stock's yield is lower than the 10-year Treasury yield, it is considered overvalued compared to bonds. Conversely, if the stock's yield is higher, it is deemed undervalued. Thus, for value investors, the stock market presents a better investment opportunity if the earnings yield exceeds the Treasury yield.

The Winning Strategy

We have set an Earnings Yield greater than 10% as our primary screening criterion but it alone cannot be used for picking stocks that have the potential to generate solid returns. So, we have added the following parameters to the screen:

Estimated EPS growth for the next 12 months greater than or equal to the S&P 500: This metric compares the 12-month forward EPS estimate with the 12-month actual EPS.

Average Daily Volume (20 Day) greater than or equal to 100,000: High trading volume implies that a stock has adequate liquidity.

Current Price greater than or equal to $5.

Buy-Rated Stocks: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have been known to outperform peers in any type of market environment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Our Picks

Here we highlight four of the 48 stocks that qualified the screening:

Adecoagro is an agricultural company engaged in farming crops and other agricultural products, cattle and dairy operations, sugar, ethanol and energy production and land transformation. The Zacks Consensus Estimate for AGRO’s 2026 sales and earnings implies year-over-year growth of 30% and 452%, respectively. EPS estimates for the current year have moved up by 43 cents over the past 60 days. Adecoagro currently sports a Zacks Rank #1 and has a Value Score of A.

Fortuna Mining engages in precious and base metal mining, primarily in Argentina, Burkina Faso, Mexico, Peru and Cote d'Ivoire. The Zacks Consensus Estimate for FSM’s 2026 earnings implies year-over-year growth of 180%. EPS estimates for the current year have moved up by 75 cents over the past 60 days. Fortuna Mining currently sports a Zacks Rank #1 and has a Value Score of B.

National Energy delivers comprehensive oilfield, drilling and production solutions in the Middle East and North Africa region. The Zacks Consensus Estimate for NESR’s 2026 sales and earnings implies year-over-year growth of 35% and 94%, respectively. EPS estimates for 2026 have moved up by 11 cents over the past 60 days. National Energy currently sports a Zacks Rank #1 and has a Value Score of B.

Betterware de México is a direct-to-consumer selling company, primarily focused on the home organization and solutions segment. The Zacks Consensus Estimate for BWMX’s 2026 sales and earnings implies year-over-year growth of 23% and 65%, respectively. EPS estimates for 2026 have moved up by 62 cents over the past 60 days. Betterware currently sports a Zacks Rank #1 and has a Value Score of A.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research