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Time to Buy These 5 Value Stocks With High Earnings Yield
BVNBuenaventura(BVN) ZACKS·2025-02-07 14:25

Core Viewpoint - Markets are experiencing volatility due to escalating tariff concerns and stagnant interest rates, making value investing a strategic approach to identify fundamentally strong stocks trading below their intrinsic value [1] Earnings Yield Analysis - Earnings yield is calculated as annual earnings per share (EPS) divided by market price, serving as a measure of anticipated return from earnings for each dollar invested [3] - A higher earnings yield indicates a stock may be undervalued, while a lower yield suggests it may be overpriced [3] - Earnings yield can be compared to prevailing interest rates, such as the 10-year Treasury yield, to assess relative value against fixed-income securities [4] Investment Strategy - A screening criterion of an earnings yield greater than 10% is established, supplemented by additional parameters such as estimated EPS growth and average daily trading volume [6][7] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) are expected to outperform peers in various market conditions [8] Selected Stocks - Dana Incorporated (DAN): Expected 2025 earnings growth of 79%, with a recent EPS estimate increase of $0.20, Zacks Rank 1, Value Score A [9] - Ingevity Corporation (NGVT): Anticipated 2025 earnings growth of 62%, with a $1 increase in EPS estimates, Zacks Rank 1, Value Score B [10] - Compania de Minas Buenaventura S.A.A. (BVN): Projected 2025 earnings growth of 30.5%, with a $0.03 increase in EPS estimates, Zacks Rank 1, Value Score B [11] - Noble Corporation (NE): Expected 2025 earnings growth of 22%, with an $0.08 increase in EPS estimates, Zacks Rank 1, Value Score A [12] - Suzano S.A. (SUZ): Anticipated 2025 earnings growth of 395%, with a $0.21 increase in EPS estimates, Zacks Rank 1, Value Score A [13]