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4 High Earnings Yield Value Stocks You Should be Owning
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Key Takeaways
FMS, EGO, HOPE, and HRTG are value stocks with earnings yields above 10% and strong growth forecasts.
EPS estimates for all four stocks have been revised upward in recent weeks, signaling growing optimism.
Each stock trades above $5 with solid liquidity, making them attractive picks for value-focused investors.
The U.S. stock market bounced back from its April lows, ending the first half of the year on a strong note. Fears over the impact of tariffs somewhat eased, and a strong June jobs report helped ease concerns about an economic slowdown. But despite the rebound, there’s still an air of caution. Trade tensions remain unresolved, with the risk of additional tariffs on the table. Meanwhile, the Federal Reserve’s next move on interest rates remains uncertain, despite growing pressure from U.S. President Trump.
In a market clouded by unpredictability, value investing is a sensible strategy. These are stocks of companies that may be undervalued but have strong fundamentals. They tend to offer stability when markets get shaky, with the potential for long-term gains. Rather than chasing fast-moving, hype-driven stocks, putting your money into solid businesses trading at fair or discounted prices could be the smarter move now.
Fresenius Medical Care AG & Co (FMS - Free Report) , Eldorado Gold (EGO - Free Report) , Hope Bancorp Inc. (HOPE - Free Report) and Heritage Insurance Holdings, Inc. (HRTG - Free Report) are some value stocks with high earnings yield that investors can consider betting on.
Earnings Yield Metric Strength
Earnings yield, expressed in percentage, is calculated as (Annual Earnings per Share/Market Price) x 100. 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, investors can look for the one with a higher earnings yield. Firms with higher earnings yield are considered underpriced, while those with lower earnings yield are seen as overpriced.
Importantly, earnings yield can also be used to compare the performance of a market index with the 10-year Treasury yield to get a sense of the return on investment it offers compared to virtually risk-free returns. When the yield of the market index is more than the 10-year Treasury yield, stocks can be considered as undervalued than bonds. In this situation, investing in the stock market would be a better option for a value investor.
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.
Fresenius Medical Care is one of the largest integrated providers of products and services for individuals undergoing dialysis following chronic kidney failure. The Zacks Consensus Estimate for FMS’ 2025 and 2026 earnings implies year-over-year growth of 33% and 12%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 6 cents and 13 cents, respectively, over the past 30 days. Fresenius Medical Care currently sports a Zacks Rank #1 and has a Value Score of B.
Eldorado Gold is a gold producer with mining, development and exploration operations in Turkey, Canada and Greece. The Zacks Consensus Estimate for EGO’s 2025 and 2026 earnings implies year-over-year growth of 10% and 55%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 9 cents and 16 cents, respectively, over the past 30 days. Eldorado Gold currently sports a Zacks Rank #1 and has a Value Score of A.
Hope Bancorp operates as a bank holding company, providing commercial banking services primarily to small- to medium-sized businesses and individuals in the United States. The Zacks Consensus Estimate for HOPE’s 2025 and 2026 earnings implies year-over-year growth of 12% and 40%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 4 cents and 8 cents, respectively, over the past 30 days. Hope Bancorp currently sports a Zacks Rank #1 and has a Value Score of B.
Heritage Insurance provides personal and commercial residential insurance products. The Zacks Consensus Estimate for HRTG’s 2025 and 2026 earnings implies year-over-year growth of 62% and 13%, respectively. EPS estimates for the current and next year have moved up by 82 cents and 55 cents, respectively, over the past 60 days. Heritage Insurance 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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4 High Earnings Yield Value Stocks You Should be Owning
Key Takeaways
The U.S. stock market bounced back from its April lows, ending the first half of the year on a strong note. Fears over the impact of tariffs somewhat eased, and a strong June jobs report helped ease concerns about an economic slowdown. But despite the rebound, there’s still an air of caution. Trade tensions remain unresolved, with the risk of additional tariffs on the table. Meanwhile, the Federal Reserve’s next move on interest rates remains uncertain, despite growing pressure from U.S. President Trump.
In a market clouded by unpredictability, value investing is a sensible strategy. These are stocks of companies that may be undervalued but have strong fundamentals. They tend to offer stability when markets get shaky, with the potential for long-term gains. Rather than chasing fast-moving, hype-driven stocks, putting your money into solid businesses trading at fair or discounted prices could be the smarter move now.
Fresenius Medical Care AG & Co (FMS - Free Report) , Eldorado Gold (EGO - Free Report) , Hope Bancorp Inc. (HOPE - Free Report) and Heritage Insurance Holdings, Inc. (HRTG - Free Report) are some value stocks with high earnings yield that investors can consider betting on.
Earnings Yield Metric Strength
Earnings yield, expressed in percentage, is calculated as (Annual Earnings per Share/Market Price) x 100. 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, investors can look for the one with a higher earnings yield. Firms with higher earnings yield are considered underpriced, while those with lower earnings yield are seen as overpriced.
Importantly, earnings yield can also be used to compare the performance of a market index with the 10-year Treasury yield to get a sense of the return on investment it offers compared to virtually risk-free returns. When the yield of the market index is more than the 10-year Treasury yield, stocks can be considered as undervalued than bonds. In this situation, investing in the stock market would be a better option for a value investor.
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
Fresenius Medical Care is one of the largest integrated providers of products and services for individuals undergoing dialysis following chronic kidney failure. The Zacks Consensus Estimate for FMS’ 2025 and 2026 earnings implies year-over-year growth of 33% and 12%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 6 cents and 13 cents, respectively, over the past 30 days. Fresenius Medical Care currently sports a Zacks Rank #1 and has a Value Score of B.
Eldorado Gold is a gold producer with mining, development and exploration operations in Turkey, Canada and Greece. The Zacks Consensus Estimate for EGO’s 2025 and 2026 earnings implies year-over-year growth of 10% and 55%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 9 cents and 16 cents, respectively, over the past 30 days. Eldorado Gold currently sports a Zacks Rank #1 and has a Value Score of A.
Hope Bancorp operates as a bank holding company, providing commercial banking services primarily to small- to medium-sized businesses and individuals in the United States. The Zacks Consensus Estimate for HOPE’s 2025 and 2026 earnings implies year-over-year growth of 12% and 40%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 4 cents and 8 cents, respectively, over the past 30 days. Hope Bancorp currently sports a Zacks Rank #1 and has a Value Score of B.
Heritage Insurance provides personal and commercial residential insurance products. The Zacks Consensus Estimate for HRTG’s 2025 and 2026 earnings implies year-over-year growth of 62% and 13%, respectively. EPS estimates for the current and next year have moved up by 82 cents and 55 cents, respectively, over the past 60 days. Heritage Insurance 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.