Invest in Value With These 5 High Earnings Yield Stocks

Market Overview - The current market is characterized by uncertainty, with tech stocks facing pressure due to concerns about an artificial intelligence bubble, alongside global tensions, trade disputes, and rising inflation expectations [1][10] - In this environment, value investing is recommended, focusing on purchasing solid companies at reasonable prices [1][10] Earnings Yield - Earnings yield is a key metric that indicates how much a company earns for every dollar invested in its stock, calculated by dividing annual earnings per share (EPS) by market price [3] - A higher earnings yield typically suggests a stock may be undervalued, while a lower yield could indicate overvaluation, assuming other fundamentals are equal [4] - Investors often compare earnings yield with bond yields, particularly the 10-year U.S. Treasury yield, to assess stock attractiveness [5] Screening Criteria for Value Stocks - A primary screening criterion is an earnings yield greater than 10%, supplemented by additional parameters such as estimated EPS growth, average daily volume, and current price [6][7][8] - The estimated EPS growth for the next 12 months should be greater than or equal to the S&P 500, indicating potential for solid returns [6] Selected Stocks - Plains GP Holdings (PAGP): Involved in crude oil and refined products transportation, with a projected earnings growth of 215.4% and 27% for 2025 and 2026, respectively [9] - Heritage Insurance (HRTG): Provides insurance products, with expected earnings growth of 104% and 1.2% for 2025 and 2026, respectively [11] - The Mosaic Company (MOS): A leading producer in agriculture, with projected earnings growth of 60% for 2025 [12] - LATAM Airlines Group (LTM): Latin America's leading airline, with expected earnings growth of 45% and 19% for 2025 and 2026, respectively [13] - PHINIA Inc. (PHIN): Designs fuel systems, with projected earnings growth of 18% for both 2025 and 2026 [14]