Buy These 5 Value Stocks With High Earnings Yield Now

Core Viewpoint - The Federal Open Market Committee (FOMC) has maintained the Federal Funds rate between 5.25% and 5.5% for nearly a year, with no immediate plans to lower rates despite persistent high inflation, particularly in the personal consumption expenditures (PCE) price index, which the Fed targets at 2% [1] Group 1: High Interest Rates and Value Investing - High interest rates create challenges but also opportunities for long-term investors focused on strong fundamentals, allowing them to acquire quality stocks at attractive prices [2] - Value investors can navigate a high interest rate environment by evaluating intrinsic value, focusing on resilient companies, and maintaining a patient approach [2] Group 2: Earnings Yield as a Valuation Metric - Earnings yield is calculated as (Annual Earnings per Share/Market Price) x 100, with higher earnings yield stocks likely to provide better returns [3] - This ratio is useful for comparing stocks with market indices or fixed-income securities, indicating that stocks may be undervalued compared to bonds when their yield exceeds the 10-year Treasury yield [4] Group 3: Stock Screening Criteria - A primary screening criterion for selecting stocks is an Earnings Yield greater than 10%, supplemented by additional parameters such as estimated EPS growth, average daily volume, current price, and buy-rated stocks [5] Group 4: Top Picks for High-Earnings Yield Value Stocks - Hanesbrands Inc. (HBI) is projected to have year-over-year earnings growth of 667% and 54% for 2024 and 2025, respectively, with a Zacks Rank 1 and Value Score of A [7] - Arko Corp. (ARKO) is expected to see earnings growth of 125% in 2024, also holding a Zacks Rank 1 and Value Score of A [8] - Great Lakes Dredge & Dock Corporation (GLDD) anticipates earnings growth of 421% and 16% for 2024 and 2025, with a Zacks Rank 1 and Value Score of B [9] - Sylvamo Corporation (SLVM) projects earnings growth of 4% and 5% for 2024 and 2025, holding a Zacks Rank 1 and Value Score of A [10] - SkyWest, Inc. (SKYW) expects earnings growth of 784% and 17% for 2024 and 2025, with a Zacks Rank 1 and Value Score of A [11]