5 High Earnings Yield Stocks Poised for Long-Term Gains

Core Insights - Value investing focuses on identifying undervalued assets with long-term growth potential, emphasizing intrinsic value and fundamental analysis over short-term market fluctuations [1] - Earnings yield is a key metric for assessing undervalued stocks, calculated by dividing annual earnings per share (EPS) by market price per share, serving as the inverse of the price-to-earnings (P/E) ratio [1] - A higher earnings yield compared to the 10-year Treasury yield indicates a stock is undervalued, while a lower yield suggests overvaluation [2] Screening Criteria - The primary screening criterion is an earnings yield greater than 10%, supplemented by estimated EPS growth greater than or equal to the S&P 500, average daily volume of at least 100,000, and a current price of $5 or more [3] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) are expected to outperform peers in various market conditions [3] Selected Stocks - Hanesbrands Inc. (HBI): Expected earnings growth of 666.7% in 2024 and 54% in 2025, with a Zacks Rank 1 and a Value Score of A [4] - American Axle & Manufacturing Holdings, Inc. (AXL): Projected earnings growth of 544% in 2024 and 115% in 2025, also holding a Zacks Rank 1 and a Value Score of A [5] - Futu Holdings Limited (FUTU): Anticipated earnings growth of 19.4% in 2024 and 19% in 2025, with a Zacks Rank 1 and a Value Score of B [6] - Navigator Holdings Limited (NVGS): Expected earnings growth of 27.4% in 2024 and 37% in 2025, maintaining a Zacks Rank 1 and a Value Score of B [6] - SM Energy Company (SM): Projected earnings growth of 24% in 2024 and 22% in 2025, with a Zacks Rank 1 and a Value Score of A [7]