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5 High Earnings Yield Value Picks Ahead of Key Economic Reports
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Key Takeaways
Earnings yield highlights stocks generating strong profits relative to price.
The screen targets earnings yield above 10%, forward EPS growth, solid liquidity, and stocks priced above $5.
Upcoming jobs, inflation and retail sales reports to shape rate-cut expectations and broader market direction.
Markets ended yesterday slightly lower as pressure continued on some of the biggest names tied to the artificial intelligence (AI) trade. After a strong run, investors are starting to question whether AI expectations have run too far, too fast. That has triggered some rotation out of tech and into more reasonably priced value stocks.
Markets are waiting on key economic data this week. The November jobs report is due today, followed by an inflation update on Thursday. Retail sales data for October will also be closely watched.
Together, these reports will help shape expectations around interest rate cuts in 2026 and whether the Federal Reserve is truly done easing policy. Last week, the Fed delivered its third straight quarter-point rate cut. But the path forward is far from clear. Investors are unsure how much more support the economy will get.
Value Investing Is the Way Forward
In today’s market, chasing hype can be risky, especially as lofty expectations start to cool. This is where value investing makes sense. When volatility rises and narratives reset, the market often rewards patience, discipline, and a focus on fundamentals.
Value investing takes a long-term view. It focuses on a company’s intrinsic value, backed by earnings power, financial strength, and sustainable cash flows. The goal is simple— buy quality businesses trading below their true worth and benefit as prices eventually reflect fundamentals.
One useful metric for spotting attractive opportunities is earnings yield, which highlights stocks generating strong profits relative to their price. Investors looking down this path may find interest in high earnings yield names such as CorMedix Inc. (CRMD - Free Report) , Centerra Gold (CGAU - Free Report) , Commercial Metals Co. (CMC - Free Report) , CommScope Holding Company, Inc. (COMM - Free Report) and Seanergy Maritime Holdings (SHIP - Free Report) .
Earnings Yield Strength
Earnings yield, expressed in percentage, is calculated as annual earnings per share 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.
Earnings yield 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. 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.
Setting the Right Filters
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 52 stocks that qualified the screening:
CorMedix is a biopharmaceutical company focused on developing and commercializing therapeutic products for the prevention and treatment of infectious and inflammatory diseases. The Zacks Consensus Estimate for CRMD’s 2025 sales and EPS implies year-over-year growth of 613% and 1,057%, respectively. EPS estimates for the current and next year have moved up by 63 cents and 30 cents, respectively, over the past 30 days. CorMedix currently sports a Zacks Rank #1 and has a Value Score of B.
Centerra explores, develops and operates gold and copper properties across North America, Turkey and other international regions,while also exploring for molybdenum. The Zacks Consensus Estimate for CGAU’s 2025 and 2026 EPS implies year-over-year growth of 37% and 30%, respectively. EPS estimates for the current and next year have moved up by 5 cents and 3 cents, respectively, over the past 30 days. Centerra currently sports a Zacks Rank #1 and has a Value Score of A.
Commercial Metals manufactures, recycles and markets steel and metal products, related materials and services. The Zacks Consensus Estimate for CMC’s fiscal 2026 sales and EPS implies year-over-year growth of 7% and 125%, respectively. EPS estimates for the current and next year have moved up by $1.24 and $1.37, respectively, over the past 30 days. Commercial Metals currently sports a Zacks Rank #1 and has a Value Score of B.
CommScope is a key player in communications and networking hardware, offering solutions that enable wireline and wireless network convergence, a critical foundation for 5G deployment. The Zacks Consensus Estimate for COMM’s 2025 sales and earnings implies year-over-year growth of 17% and 5,566%, respectively. EPS estimates for the current and next year have moved up by 35 cents and 55 cents, respectively, over the past 60 days. CommScope currently sports a Zacks Rank #1 and has a Value Score of B.
Seanergy is a prominent pure-play Capesize ship-owner that provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Zacks Consensus Estimate for SHIP’s 2026 sales and EPS implies year-over-year growth of 8% and 39%, respectively. EPS estimates for the current and next year have moved up by 39 cents and 36 cents, respectively, over the past 30 days. Seanergy 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 your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
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.
Image: Bigstock
5 High Earnings Yield Value Picks Ahead of Key Economic Reports
Key Takeaways
Markets ended yesterday slightly lower as pressure continued on some of the biggest names tied to the artificial intelligence (AI) trade. After a strong run, investors are starting to question whether AI expectations have run too far, too fast. That has triggered some rotation out of tech and into more reasonably priced value stocks.
Markets are waiting on key economic data this week. The November jobs report is due today, followed by an inflation update on Thursday. Retail sales data for October will also be closely watched.
Together, these reports will help shape expectations around interest rate cuts in 2026 and whether the Federal Reserve is truly done easing policy. Last week, the Fed delivered its third straight quarter-point rate cut. But the path forward is far from clear. Investors are unsure how much more support the economy will get.
Value Investing Is the Way Forward
In today’s market, chasing hype can be risky, especially as lofty expectations start to cool. This is where value investing makes sense. When volatility rises and narratives reset, the market often rewards patience, discipline, and a focus on fundamentals.
Value investing takes a long-term view. It focuses on a company’s intrinsic value, backed by earnings power, financial strength, and sustainable cash flows. The goal is simple— buy quality businesses trading below their true worth and benefit as prices eventually reflect fundamentals.
One useful metric for spotting attractive opportunities is earnings yield, which highlights stocks generating strong profits relative to their price. Investors looking down this path may find interest in high earnings yield names such as CorMedix Inc. (CRMD - Free Report) , Centerra Gold (CGAU - Free Report) , Commercial Metals Co. (CMC - Free Report) , CommScope Holding Company, Inc. (COMM - Free Report) and Seanergy Maritime Holdings (SHIP - Free Report) .
Earnings Yield Strength
Earnings yield, expressed in percentage, is calculated as annual earnings per share 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.
Earnings yield 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. 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.
Setting the Right Filters
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 52 stocks that qualified the screening:
CorMedix is a biopharmaceutical company focused on developing and commercializing therapeutic products for the prevention and treatment of infectious and inflammatory diseases. The Zacks Consensus Estimate for CRMD’s 2025 sales and EPS implies year-over-year growth of 613% and 1,057%, respectively. EPS estimates for the current and next year have moved up by 63 cents and 30 cents, respectively, over the past 30 days. CorMedix currently sports a Zacks Rank #1 and has a Value Score of B.
Centerra explores, develops and operates gold and copper properties across North America, Turkey and other international regions,while also exploring for molybdenum. The Zacks Consensus Estimate for CGAU’s 2025 and 2026 EPS implies year-over-year growth of 37% and 30%, respectively. EPS estimates for the current and next year have moved up by 5 cents and 3 cents, respectively, over the past 30 days. Centerra currently sports a Zacks Rank #1 and has a Value Score of A.
Commercial Metals manufactures, recycles and markets steel and metal products, related materials and services. The Zacks Consensus Estimate for CMC’s fiscal 2026 sales and EPS implies year-over-year growth of 7% and 125%, respectively. EPS estimates for the current and next year have moved up by $1.24 and $1.37, respectively, over the past 30 days. Commercial Metals currently sports a Zacks Rank #1 and has a Value Score of B.
CommScope is a key player in communications and networking hardware, offering solutions that enable wireline and wireless network convergence, a critical foundation for 5G deployment. The Zacks Consensus Estimate for COMM’s 2025 sales and earnings implies year-over-year growth of 17% and 5,566%, respectively. EPS estimates for the current and next year have moved up by 35 cents and 55 cents, respectively, over the past 60 days. CommScope currently sports a Zacks Rank #1 and has a Value Score of B.
Seanergy is a prominent pure-play Capesize ship-owner that provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Zacks Consensus Estimate for SHIP’s 2026 sales and EPS implies year-over-year growth of 8% and 39%, respectively. EPS estimates for the current and next year have moved up by 39 cents and 36 cents, respectively, over the past 30 days. Seanergy 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 your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
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.