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5 High Earnings Yield Value Picks Amid Renewed US-China Tensions
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Key Takeaways
Five value stocks with >10% earnings yield stand out as tensions flare between the U.S. and China.
AU, ORC, LTM, PRTH, and ALIZY show strong projected EPS growth through 2026, boosting their appeal.
All five stocks have rising earnings estimates and meet liquidity, price, and growth screening criteria.
Wall Street had a stellar run in May. The S&P 500 climbed 6.2% and the Nasdaq rose 9.6% —marking the best month for both indices since late 2023. Investors cheered as fears around steep tariffs faded when Trump announced a temporary pause on new trade duties on China and the EU.
But the celebration might be short-lived. The tariff threat isn’t over — it’s just on hold. Uncertainty still looms large. Yesterday, China accused the United States of violating their fragile trade truce by tightening controls on AI chip exports and student visas, raising tensions once again. With both economies deeply linked, even a small rift can shake markets.
In times like these, when headlines shift quickly and geopolitical risks stay elevated, investors often look for steadier ground. That’s where value investing comes in. By focusing on strong companies with solid fundamentals that are trading below their true worth, investors can ride out the volatility and build long-term wealth when the bigger picture looks uncertain.
AngloGold Ashanti plc (AU - Free Report) , Orchid Island Capital, Inc. (ORC - Free Report) , LATAM Airlines Group (LTM - Free Report) , Priority Technology Holdings Inc. (PRTH - Free Report) and Allianz SE (ALIZY - Free Report) are a few value stocks boasting high earnings yield that can generate handsome returns.
Earnings Yield Metric
Earnings yield, expressed as a percentage, is calculated by dividing a company's annual earnings per share (EPS) by its current stock price. It tells you how much return you might get from a stock’s earnings for every dollar you invest. When comparing similar companies, a higher earnings yield suggests the stock may be undervalued, while a lower yield could mean it’s overpriced.
Earnings yield is simply the reciprocal of the P/E ratio, but it can be more helpful in some cases, especially when comparing stocks to safer investments like government bonds. For example, investors often compare a stock’s earnings yield to the 10-year U.S. Treasury yield to see how the stock stacks up against a low-risk alternative.
If a stock’s earnings yield is lower than the Treasury yield, it might not be worth the risk and could be seen as overvalued. But if the stock’s yield is higher, it may offer better returns, making it more attractive—especially for value investors looking for good deals.
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.
Here we highlight five of the 43 stocks that qualified the screening:
AngloGold operates as a gold mining company in Africa, the Americas and Australia. The Zacks Consensus Estimate for AU’s 2025 and 2026 earnings implies year-over-year growth of 95% and 6.7%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 83 cents and 55 cents, respectively, over the past 30 days. AngloGold currently sports a Zacks Rank #1 and has a Value Score of A.
Orchid Island is a specialty finance company that invests in residential mortgage-backed securities with principal and interest payments guaranteed by the United States. The Zacks Consensus Estimate for ORC’s 2025 and 2026 earnings implies year-over-year growth of 394% and 24.5%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 20 cents and 23 cents, respectively, over the past 60 days. Orchid Island currently sports a Zacks Rank #1 and has a Value Score of B.
LATAM Airlines offers passenger and cargo air transportation across the Americas, the Caribbean, Europe and Oceania. The Zacks Consensus Estimate for LTM’s 2025 and 2026 earnings implies year-over-year growth of 27.5% and 20%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 75 cents and 49 cents, respectively, over the past 60 days. LATAM Airlines currently sports a Zacks Rank #1 and has a Value Score of A.
Priority Technology operates as a payment technology company in the United States. The Zacks Consensus Estimate for PRTH’s 2025 and 2026 earnings implies year-over-year growth of 108% and 34%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 2 cents and 9 cents, respectively, over the past 30 days. Priority Technology currently sports a Zacks Rank #1 and has a Value Score of A.
Allianz is a provider of property-casualty, life, and health insurance, along with asset management products and services. The Zacks Consensus Estimate for ALIZY’s 2025 and 2026 earnings implies year-over-year growth of 16.4% and 9%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 1 cent each over the past seven days. Allianz currently sports a Zacks Rank #1 and has a Value Score of B.
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.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
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.
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5 High Earnings Yield Value Picks Amid Renewed US-China Tensions
Key Takeaways
Wall Street had a stellar run in May. The S&P 500 climbed 6.2% and the Nasdaq rose 9.6% —marking the best month for both indices since late 2023. Investors cheered as fears around steep tariffs faded when Trump announced a temporary pause on new trade duties on China and the EU.
But the celebration might be short-lived. The tariff threat isn’t over — it’s just on hold. Uncertainty still looms large. Yesterday, China accused the United States of violating their fragile trade truce by tightening controls on AI chip exports and student visas, raising tensions once again. With both economies deeply linked, even a small rift can shake markets.
In times like these, when headlines shift quickly and geopolitical risks stay elevated, investors often look for steadier ground. That’s where value investing comes in. By focusing on strong companies with solid fundamentals that are trading below their true worth, investors can ride out the volatility and build long-term wealth when the bigger picture looks uncertain.
AngloGold Ashanti plc (AU - Free Report) , Orchid Island Capital, Inc. (ORC - Free Report) , LATAM Airlines Group (LTM - Free Report) , Priority Technology Holdings Inc. (PRTH - Free Report) and Allianz SE (ALIZY - Free Report) are a few value stocks boasting high earnings yield that can generate handsome returns.
Earnings Yield Metric
Earnings yield, expressed as a percentage, is calculated by dividing a company's annual earnings per share (EPS) by its current stock price. It tells you how much return you might get from a stock’s earnings for every dollar you invest. When comparing similar companies, a higher earnings yield suggests the stock may be undervalued, while a lower yield could mean it’s overpriced.
Earnings yield is simply the reciprocal of the P/E ratio, but it can be more helpful in some cases, especially when comparing stocks to safer investments like government bonds. For example, investors often compare a stock’s earnings yield to the 10-year U.S. Treasury yield to see how the stock stacks up against a low-risk alternative.
If a stock’s earnings yield is lower than the Treasury yield, it might not be worth the risk and could be seen as overvalued. But if the stock’s yield is higher, it may offer better returns, making it more attractive—especially for value investors looking for good deals.
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 five of the 43 stocks that qualified the screening:
AngloGold operates as a gold mining company in Africa, the Americas and Australia. The Zacks Consensus Estimate for AU’s 2025 and 2026 earnings implies year-over-year growth of 95% and 6.7%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 83 cents and 55 cents, respectively, over the past 30 days. AngloGold currently sports a Zacks Rank #1 and has a Value Score of A.
Orchid Island is a specialty finance company that invests in residential mortgage-backed securities with principal and interest payments guaranteed by the United States. The Zacks Consensus Estimate for ORC’s 2025 and 2026 earnings implies year-over-year growth of 394% and 24.5%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 20 cents and 23 cents, respectively, over the past 60 days. Orchid Island currently sports a Zacks Rank #1 and has a Value Score of B.
LATAM Airlines offers passenger and cargo air transportation across the Americas, the Caribbean, Europe and Oceania. The Zacks Consensus Estimate for LTM’s 2025 and 2026 earnings implies year-over-year growth of 27.5% and 20%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 75 cents and 49 cents, respectively, over the past 60 days. LATAM Airlines currently sports a Zacks Rank #1 and has a Value Score of A.
Priority Technology operates as a payment technology company in the United States. The Zacks Consensus Estimate for PRTH’s 2025 and 2026 earnings implies year-over-year growth of 108% and 34%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 2 cents and 9 cents, respectively, over the past 30 days. Priority Technology currently sports a Zacks Rank #1 and has a Value Score of A.
Allianz is a provider of property-casualty, life, and health insurance, along with asset management products and services. The Zacks Consensus Estimate for ALIZY’s 2025 and 2026 earnings implies year-over-year growth of 16.4% and 9%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 1 cent each over the past seven days. Allianz currently sports a Zacks Rank #1 and has a Value Score of B.
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.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
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.