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5 Value Plays Amid Uncertainty Over US-Iran Peace Deal
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Key Takeaways
Earnings yield is calculated by dividing a company's EPS by its current stock price.
A higher earnings yield indicates that a stock may be undervalued and could provide growth potential.
LYB, NEXA, CVX, AVT and SHIP are a few solid high earnings yield value stocks.
Tensions between the United States and Iran continue as both sides exchange military strikes. Iran’s Revolutionary Guard attacked a U.S. air base after American forces reportedly targeted Iranian drones and launch sites near the Strait of Hormuz. There is no clear sign of peace talks succeeding yet. U.S. President Trump said he is in no hurry to strike a deal and insisted Iran cannot simply wait for U.S. election pressure to weaken his stance. The White House also dismissed reports that the United States may ease restrictions on Iran in exchange for reopening the vital oil shipping route, signaling that both military and political tensions remain high.
Uncertainty around when a deal might be reached has kept central banks cautious, as policymakers assess whether higher energy prices could fuel inflation and require tighter monetary policy. In such an environment, value investing appears particularly prudent, as investors tend to favor fundamentally strong, reasonably valued companies that can better withstand economic and market volatility. This approach hinges on the idea that market prices often don’t fully reflect a company’s fundamentals, providing opportunities to benefit from market corrections in the long run.
Earnings yield is calculated by dividing a company’s earnings per share (EPS) by its current stock price (Earnings Yield = EPS / Current Stock Price). This figure represents the profit generated for each dollar invested, effectively serving as the inverse of the price-to-earnings (P/E) ratio. A higher earnings yield typically indicates that a stock may be undervalued and could provide growth potential, while a lower earnings yield could suggest overvaluation.
Beyond identifying individual stocks, earnings yield also aids in comparing the stock market to fixed-income investments, like 10-year Treasury bonds. If the earnings yield of a market index surpasses the bond yield, it can indicate favorable conditions for investing in stocks over bonds, which is valuable for portfolio diversification.
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 discuss five of the 38 stocks that qualified the screening:
LyondellBasell is among the world’s leading plastics, chemicals, and refining companies, serving a wide range of industries including electronics, automotive parts, packaging, construction materials, and biofuels.The Zacks Consensus Estimate for LYB’s 2026 sales and earnings implies year-over-year growth of 12% and 414%, respectively. EPS estimates for the current and next year have moved up by $3.29 and $2.19, respectively, over the past 30 days. LyondellBasell currently sports a Zacks Rank #1 and has a Value Score of B.
Nexa Resources is an integrated zinc producer, engaged in developing and operating mining and smelting assets, primarily in Latin America. The Zacks Consensus Estimate for NEXA’s 2026 sales and earnings implies year-over-year growth of 15% and 214%, respectively. EPS estimates for the current and next year have moved up by 87 cents and 37 cents, respectively, over the past 30 days. Nexa Resources currently carries a Zacks Rank #1 and has a Value Score of A.
Chevron is one of the world’s largest integrated energy companies, with operations spanning oil production, refining, and marketing across global markets. The Zacks Consensus Estimate for CVX’s 2026 sales and earnings implies year-over-year growth of 16% and 116%, respectively. EPS estimates for the current and next year have moved up by $2.19 and 80 cents, respectively, over the past 30 days. Chevron currently sports a Zacks Rank #1 and has a Value Score of B.
Seanergy Maritime is a global shipping firm focused on transporting dry bulk commodities by sea. The Zacks Consensus Estimate for SHIP’s 2026 sales and earnings implies year-over-year growth of 16% and 63%, respectively. EPS estimates for the current and next year have moved up by 13 cents and 10 cents, respectively, over the past 60 days. Seanergy Maritime currently sports a Zacks Rank #1 and has a Value Score of B.
Avnet is a leading global distributor of electronic components and computer products, serving OEMs, manufacturing services providers, design manufacturers, and value-added resellers. The Zacks Consensus Estimate for AVT’s fiscal 2026 sales and earnings implies year-over-year growth of 21% and 49%, respectively. EPS estimates for the current and next fiscal have moved up by 50 cents and 86 cents, respectively, over the past 30 days. Avnet currently carries a Zacks Rank #2 and has a Value Score of A.
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5 Value Plays Amid Uncertainty Over US-Iran Peace Deal
Key Takeaways
Tensions between the United States and Iran continue as both sides exchange military strikes. Iran’s Revolutionary Guard attacked a U.S. air base after American forces reportedly targeted Iranian drones and launch sites near the Strait of Hormuz. There is no clear sign of peace talks succeeding yet. U.S. President Trump said he is in no hurry to strike a deal and insisted Iran cannot simply wait for U.S. election pressure to weaken his stance. The White House also dismissed reports that the United States may ease restrictions on Iran in exchange for reopening the vital oil shipping route, signaling that both military and political tensions remain high.
Uncertainty around when a deal might be reached has kept central banks cautious, as policymakers assess whether higher energy prices could fuel inflation and require tighter monetary policy. In such an environment, value investing appears particularly prudent, as investors tend to favor fundamentally strong, reasonably valued companies that can better withstand economic and market volatility. This approach hinges on the idea that market prices often don’t fully reflect a company’s fundamentals, providing opportunities to benefit from market corrections in the long run.
LyondellBasell Industries (LYB - Free Report) , Nexa Resources S.A. (NEXA - Free Report) , Chevron Corp. (CVX - Free Report) , Seanergy Maritime Holdings Corp. (SHIP - Free Report) and Avnet, Inc. (AVT - Free Report) are a few solid high earnings yield picks for value investors.
Unlock Portfolio Value With Earnings Yield
Earnings yield is calculated by dividing a company’s earnings per share (EPS) by its current stock price (Earnings Yield = EPS / Current Stock Price). This figure represents the profit generated for each dollar invested, effectively serving as the inverse of the price-to-earnings (P/E) ratio. A higher earnings yield typically indicates that a stock may be undervalued and could provide growth potential, while a lower earnings yield could suggest overvaluation.
Beyond identifying individual stocks, earnings yield also aids in comparing the stock market to fixed-income investments, like 10-year Treasury bonds. If the earnings yield of a market index surpasses the bond yield, it can indicate favorable conditions for investing in stocks over bonds, which is valuable for portfolio diversification.
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 discuss five of the 38 stocks that qualified the screening:
LyondellBasell is among the world’s leading plastics, chemicals, and refining companies, serving a wide range of industries including electronics, automotive parts, packaging, construction materials, and biofuels.The Zacks Consensus Estimate for LYB’s 2026 sales and earnings implies year-over-year growth of 12% and 414%, respectively. EPS estimates for the current and next year have moved up by $3.29 and $2.19, respectively, over the past 30 days. LyondellBasell currently sports a Zacks Rank #1 and has a Value Score of B.
Nexa Resources is an integrated zinc producer, engaged in developing and operating mining and smelting assets, primarily in Latin America. The Zacks Consensus Estimate for NEXA’s 2026 sales and earnings implies year-over-year growth of 15% and 214%, respectively. EPS estimates for the current and next year have moved up by 87 cents and 37 cents, respectively, over the past 30 days. Nexa Resources currently carries a Zacks Rank #1 and has a Value Score of A.
Chevron is one of the world’s largest integrated energy companies, with operations spanning oil production, refining, and marketing across global markets. The Zacks Consensus Estimate for CVX’s 2026 sales and earnings implies year-over-year growth of 16% and 116%, respectively. EPS estimates for the current and next year have moved up by $2.19 and 80 cents, respectively, over the past 30 days. Chevron currently sports a Zacks Rank #1 and has a Value Score of B.
Seanergy Maritime is a global shipping firm focused on transporting dry bulk commodities by sea. The Zacks Consensus Estimate for SHIP’s 2026 sales and earnings implies year-over-year growth of 16% and 63%, respectively. EPS estimates for the current and next year have moved up by 13 cents and 10 cents, respectively, over the past 60 days. Seanergy Maritime currently sports a Zacks Rank #1 and has a Value Score of B.
Avnet is a leading global distributor of electronic components and computer products, serving OEMs, manufacturing services providers, design manufacturers, and value-added resellers. The Zacks Consensus Estimate for AVT’s fiscal 2026 sales and earnings implies year-over-year growth of 21% and 49%, respectively. EPS estimates for the current and next fiscal have moved up by 50 cents and 86 cents, respectively, over the past 30 days. Avnet currently carries a Zacks Rank #2 and has a Value Score of A.