Investors are navigating a market environment marked by persistent uncertainty. Geopolitical tensions in the Middle East, the lack of a lasting ceasefire, and concerns about the broader economic outlook continue to weigh on sentiment. Weakness in the technology sector and signs of high inflation add to the concerns. As a result, heightened volatility and shifting investor expectations have made stock selection increasingly important.

In such an environment, value investing can offer a disciplined approach to building long-term wealth. Rather than chasing market momentum or speculative trends, value investors focus on identifying companies whose stock prices do not fully reflect their underlying business fundamentals. The goal is to purchase quality businesses at a discount to their intrinsic value and benefit when the market eventually recognizes their true worth.

With value investing, investors look beyond short-term market noise and focus on a company’s earnings power, financial strength and long-term prospects. Value investors can consider stocks such as LyondellBasell Industries (LYB Quick QuoteLYB - Free Report) , Star Bulk Carriers (SBLK Quick QuoteSBLK - Free Report) , Cenovus Energy (CVE Quick QuoteCVE - Free Report) and Nexa Resources (NEXA Quick QuoteNEXA - Free Report) , which have high earnings yield.

Unlock Portfolio Value With Earnings Yield Metric

One metric widely used by value investors to identify potentially undervalued stocks is earnings yield. Calculated by dividing a company’s annual earnings per share by its current stock price, earnings yield indicates the amount of earnings generated for every dollar invested in a stock. Generally, a higher earnings yield suggests a stock may be undervalued relative to its earnings potential, while a lower earnings yield can indicate a richer valuation.

Earnings yield also provides a useful way to compare stocks with fixed-income investments such as bonds. When a stock’s earnings yield exceeds prevailing bond yields, it may offer a more attractive return potential, making it a valuable tool for investors searching for opportunities in an uncertain market.

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 discussed four of the 31 stocks that qualified the screening:

LyondellBasell is among the leading plastics, chemical and refining companies globally. It stands out due to its strong market position and cost advantages. The company benefits from North America's favorable natural gas environment, which supports lower production costs and stronger margins. It is expanding its manufacturing footprint through advanced facilities on the U.S. Gulf Coast that utilize proprietary technologies. Strategic moves, including the acquisition of A. Schulman and a joint venture with Sasol in Louisiana have strengthened its presence in higher-value polymer solutions. Meanwhile, solid cash generation and LyondellBasell’s Cash Improvement Plan should support shareholder returns through dividends and other capital allocation initiatives.

The Zacks Consensus Estimate for LYB’s 2026 sales and EPS implies year-over-year growth of 12% and 414%, respectively. EPS estimates for the current and next year have moved up by $4.11 and $2.66, respectively, over the past 60 days. LyondellBasell currently sports a Zacks Rank #1 and has a Value Score of A. 

Star Bulk is a prominent operator in the dry bulk shipping industry. Demand is supported by rising grain exports, strong bauxite shipments from Guinea, and longer-haul Atlantic trade routes that boost ton-mile demand. The company is strengthening its earnings power through fleet modernization, fuel-efficiency upgrades and the delivery of new high-specification vessels. Star Bulk also benefits from one of the industry's lowest cost structures, supported by its scale and operational efficiencies. With a policy of distributing 100% of free cash flow, a strong balance sheet, and management’s expectations of favorable market conditions over the next 12-18 months, the company remains well-positioned to create shareholder value.

The Zacks Consensus Estimate for SBLK’s 2026 sales and EPS implies year-over-year growth of 30% and 313%, respectively. EPS estimates for the current and next year have moved up by $1.49 and 74 cents, respectively, over the past 60 days. Star Bulk currently sports a Zacks Rank #1 and has a Value Score of A. 

Cenovus is a leading integrated energy company with a portfolio of long-life oil sands and offshore assets. The company is executing a multi-year growth strategy supported by projects such as Christina Lake North, West White Rose, Narrows Lake, Foster Creek, Lloydminster, and Sunrise, which are expected to drive meaningful production growth. Cenovus also benefits from its integrated upstream and downstream operations, helping offset commodity price volatility through refining and upgrading earnings. The acquisition of MEG Energy further strengthens its oil sands footprint while creating opportunities for operational synergies, cost savings, and production optimization, supporting higher output, stronger cash flows, and improved profitability in the years ahead.

The Zacks Consensus Estimate for CVE’s 2026 sales and EPS implies year-over-year growth of 7% and 105%, respectively. EPS estimates for the current and next year have moved up by $1.43 and $1.02, respectively, over the past 60 days. Cenovus currently sports a Zacks Rank #1 and has a Value Score of B. 

Nexa is one of the world's largest zinc producers and is benefiting from a favorable environment for zinc, silver, and copper prices. The company delivered strong operational momentum in the latest quarter, driven by higher production, improving mine performance, and record output at its Aripuanã operation. Growth projects such as the Cerro Pasco Integration are expected to extend mine life and enhance profitability, while ongoing exploration continues to expand reserves and resources. Nexa should also benefit from increased exposure to silver prices following the reduction of its Cerro Lindo streaming agreement, supporting stronger cash generation, balance sheet improvement and long-term shareholder value.

The Zacks Consensus Estimate for NEXA’s 2026 sales and EPS implies year-over-year growth of 14% and 214%, respectively. EPS estimates for the current and next year have moved up by 6 cents and 4 cents, respectively, over the past 30 days. Nexa currently sports a Zacks Rank #1 and has a Value Score of A.