4 High Earnings Yield Value Stocks to Buy as Trump Resumes Presidency

Economic Environment - The favorable December inflation reading has alleviated concerns regarding the Federal Reserve's ability to justify rate cuts in 2025, contributing to positive market sentiment [1] - Uncertainty remains with Donald Trump resuming the presidency, as key policies such as higher trade tariffs and tighter immigration controls are anticipated to impact markets [2] Investment Strategy - Value investing is highlighted as a strategy to profit from stocks trading at a discount to their intrinsic values, with a focus on earnings yield as a key metric [3][5] - Earnings yield is calculated as annual earnings per share (EPS) divided by market price, providing insight into the anticipated return from earnings for each dollar invested [5][6] - A stock's earnings yield should be compared to the 10-year Treasury yield to assess its relative value; a higher yield indicates undervaluation [7] Stock Selection Criteria - An earnings yield greater than 10% is set as a primary screening criterion, supplemented by estimated EPS growth greater than or equal to the S&P 500 and an average daily volume of at least 100,000 [8][9] - Stocks must have a current price of at least $5 and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) to be considered for investment [10] Recommended Stocks - Harmony Biosciences (HRMY): Expected year-over-year growth of 18% in sales and 33% in earnings for 2025, with a Zacks Rank 1 and Value Score of A [12] - Ingevity Corporation (NGVT): Anticipated growth of 2% in sales and 62% in earnings for 2025, holding a Zacks Rank 1 and Value Score of B [13] - Gulfport Energy (GPOR): Projected year-over-year growth of 22% in sales and 55% in earnings for 2025, also with a Zacks Rank 1 and Value Score of B [14] - Pitney Bowes (PBI): Expected earnings growth of 184% for 2025, with a Zacks Rank 1 and Value Score of A [15]