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Markets have moved within a wide range in April, largely driven by shifting trade news. Stocks reacted sharply after President Trump announced new tariffs, only to ease some of them later. While the S&P 500 has posted five straight days of gains, it is still down more than 1% in the month. Investors are now focused on a busy week filled with corporate earnings and key economic data like GDP, inflation, and the jobs report. Uncertainty around trade policy continues to cloud the outlook, making it harder for investors to predict what’s next.
In times like these, value investing becomes especially relevant. Value stocks—often trading below what they’re truly worth—can provide a cushion when markets are volatile. Their lower prices and potential for steady returns can help investors weather economic uncertainty.
Investing in solid, undervalued companies may be a smarter and safer path forward. Value investors can consider stocks like Equinox Gold Corp. EQX, NCR Atleos Corp NATL, AerSale Corp ASLE and Qifu Technology, Inc. QFIN — all of which boast high earnings yield.
One interesting ratio that you can consider for ferreting out attractively valued stocks is earnings yield. 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 albeit 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.
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.
Here we discuss four of the 46 stocks that qualified the screen:
Equinox Gold is a Canadian mining company with operations in the Americas, producing gold in Canada, the United States and Brazil. It aims to exceed one million ounces of annual production through its development and expansion projects.
The Zacks Consensus Estimate for Equinox Gold’s 2025 and 2026 earnings implies year-over-year growth of 355% and 30.4%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 9 cents and 15 cents, respectively, over the past seven days. Equinox Gold currently sports a Zacks Rank #1 and has a Value Score of A.
NCR Atleos, based in Atlanta, provides digital banking, POS systems and payment solutions. It enables banks and retailers to offer seamless self-service banking experiences, enhancing customer access to financial services while reducing operational complexity with industry-leading technologies.
The Zacks Consensus Estimate for NCR Alteos’ 2025 and 2026 earnings implies year-over-year growth of 24.5% and 22.4%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 33 cents and 47 cents, respectively, over the past 60 days. NCR Alteos currently sports a Zacks Rank #1 and has a Value Score of A.
AerSale, based in Florida, is a leading provider of aviation products and services. It supports operators of Boeing, Airbus, and McDonnell Douglas jets with aftermarket solutions that reduce costs in operating, maintaining, and monetizing aircraft and components.
The Zacks Consensus Estimate for AerSale’s 2025 and 2026 earnings implies year-over-year growth of 289% and 23%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 5 cents and 8 cents, respectively, over the past 30 days. AerSale currently sports a Zacks Rank #1 and has a Value Score of B.
Qifu Technology, a China-based AI-driven Credit-Tech platform, provides financial institutions, consumers and SMEs with technology services across the loan lifecycle, including borrower acquisition, credit evaluation, fund matching and post-loan management, using advanced machine learning.
The Zacks Consensus Estimate for Qifu Technology’s 2025 and 2026 earnings implies year-over-year growth of 22.4% and 12.12%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 53 cents and 14 cents, respectively, over the past 60 days. Qifu Technology currently sports a Zacks Rank #1 and has a Value Score of A.
You can get the rest of the stocks on this list by signing up now for a 2-week free trial to the Research Wizard stock picking and backtesting software. You can also create your own strategies and test them first before making investments.
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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
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This article originally published on Zacks Investment Research (zacks.com).
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