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5 Value Stocks to Buy Amid Geopolitical and Fed Uncertainty
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Key Takeaways
Amid global tensions and policy uncertainty, value investing is the need of the hour.
Earnings yield helps spot value, with higher yields usually pointing to undervalued stocks.
The value screen highlighted VIST, AGRO, FSM, DAN and CPRI as high-earnings-yield stock picks.
Markets are dealing with a mix of global tensions and policy uncertainty now. The United States, Iran and Israel agreed to a two-week ceasefire just before a key escalation deadline, with Iran reopening the Strait of Hormuz and Israel confirming participation. However, the situation remains fragile. Within hours of the announcement, Israel launched fresh strikes in Lebanon, while Iranian media reported renewed disruption in the Strait.
At the same time, the Federal Reserve is facing a difficult balancing act. The latest FOMC minutes show policymakers are concerned about risks to both inflation and employment. While rates are on hold for now, officials warned that prolonged Middle East tensions could keep inflation high and may even require further rate hikes.
With both geopolitical risks and Fed policy direction uncertain, markets are likely to remain choppy. Value stocks stand out as a more practical choice, offering reasonable valuations and some cushion against volatility. Value investing focuses on buying quality businesses trading below their true worth and benefit, as prices eventually reflect fundamentals.
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 have highlighted five of the 40 stocks that qualified the screening:
Vista Energy engages in the exploration and production of oil and gas in Latin America. The Zacks Consensus Estimate for VIST’s 2026 sales and EPS implies year-over-year growth of 70% and 262%, respectively. EPS estimates for the current and next year have moved up by $5.63 and $4.25, respectively, over the past 30 days. Vista Energy currently sports a Zacks Rank #1 and has a Value Score of A.
Adecoagro is engaged in agricultural and agro-industrial activities in Argentina, Brazil, Chile, and Uruguay. The Zacks Consensus Estimate for AGRO’s 2026 EPS has moved north by 18 cents in the past 30 days to $1.39, implying year-over-year growth of 872%. Adecoagro currently carries a Zacks Rank #2 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 EPS has moved north by 19 cents in the past 60 days to $1.85, implying year-over-year growth of 180%. Fortuna Mining currently carries a Zacks Rank #2 and has a Value Score of A.
Dana is a leading supplier of power-conveyance and energy-management technologies for the global automotive and commercial-vehicle markets. The Zacks Consensus Estimate for DAN’s 2026 and 2027 EPS implies year-over-year growth of 1,300% and 30%, respectively. EPS estimates for the current and next year have moved up by 38 cents and 80 cents, respectively, over the past 60 days. Dana currently carries a Zacks Rank #2 and has a Value Score of A.
Capri Holdings is a global luxury fashion company behind well-known brands like Michael Kors and Jimmy Choo. The Zacks Consensus Estimate for CPRI’s 2026 and 2027 EPS estimates implies year-over-year growth of 137% and 31%, respectively. The consensus mark for 2026 and 2027 EPS has moved north by 3 cents and 4 cents, respectively, over the past 90 days. Capri Holdings currently carries a Zacks Rank #2 and has a Value Score of A.
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5 Value Stocks to Buy Amid Geopolitical and Fed Uncertainty
Key Takeaways
Markets are dealing with a mix of global tensions and policy uncertainty now. The United States, Iran and Israel agreed to a two-week ceasefire just before a key escalation deadline, with Iran reopening the Strait of Hormuz and Israel confirming participation. However, the situation remains fragile. Within hours of the announcement, Israel launched fresh strikes in Lebanon, while Iranian media reported renewed disruption in the Strait.
At the same time, the Federal Reserve is facing a difficult balancing act. The latest FOMC minutes show policymakers are concerned about risks to both inflation and employment. While rates are on hold for now, officials warned that prolonged Middle East tensions could keep inflation high and may even require further rate hikes.
With both geopolitical risks and Fed policy direction uncertain, markets are likely to remain choppy. Value stocks stand out as a more practical choice, offering reasonable valuations and some cushion against volatility. Value investing focuses on buying quality businesses trading below their true worth and benefit, as prices eventually reflect fundamentals.
Value investors can consider stocks such as Vista Energy (VIST - Free Report) , Adecoagro S.A. (AGRO - Free Report) , Fortuna Mining Corp. (FSM - Free Report) , Dana Incorporated (DAN - Free Report) and Capri Holdings Limited (CPRI - Free Report) , which have high earnings yield.
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 have highlighted five of the 40 stocks that qualified the screening:
Vista Energy engages in the exploration and production of oil and gas in Latin America. The Zacks Consensus Estimate for VIST’s 2026 sales and EPS implies year-over-year growth of 70% and 262%, respectively. EPS estimates for the current and next year have moved up by $5.63 and $4.25, respectively, over the past 30 days. Vista Energy currently sports a Zacks Rank #1 and has a Value Score of A.
Adecoagro is engaged in agricultural and agro-industrial activities in Argentina, Brazil, Chile, and Uruguay. The Zacks Consensus Estimate for AGRO’s 2026 EPS has moved north by 18 cents in the past 30 days to $1.39, implying year-over-year growth of 872%. Adecoagro currently carries a Zacks Rank #2 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 EPS has moved north by 19 cents in the past 60 days to $1.85, implying year-over-year growth of 180%. Fortuna Mining currently carries a Zacks Rank #2 and has a Value Score of A.
Dana is a leading supplier of power-conveyance and energy-management technologies for the global automotive and commercial-vehicle markets. The Zacks Consensus Estimate for DAN’s 2026 and 2027 EPS implies year-over-year growth of 1,300% and 30%, respectively. EPS estimates for the current and next year have moved up by 38 cents and 80 cents, respectively, over the past 60 days. Dana currently carries a Zacks Rank #2 and has a Value Score of A.
Capri Holdings is a global luxury fashion company behind well-known brands like Michael Kors and Jimmy Choo. The Zacks Consensus Estimate for CPRI’s 2026 and 2027 EPS estimates implies year-over-year growth of 137% and 31%, respectively. The consensus mark for 2026 and 2027 EPS has moved north by 3 cents and 4 cents, respectively, over the past 90 days. Capri Holdings currently carries a Zacks Rank #2 and has a Value Score of A.