Geopolitical Context - Geopolitical tensions in the Middle East are high, particularly between the United States and Iran, with President Trump demanding Iran's "unconditional surrender," which Iran has rejected [1] - Iran is engaging in strikes against Israel and retaliatory attacks on Gulf countries, contributing to regional instability [1] Energy Market Impact - The conflict has disrupted global energy markets, causing crude oil prices to exceed $100 per barrel for the first time in four years [2] - Rising energy costs are raising concerns about inflation and potential negative impacts on the U.S. economy [2] Investment Strategy - Investors are advised to monitor the upcoming Consumer Price Index (CPI) data, as geopolitical risks and rising oil prices may lead to stock market volatility [3] - In uncertain environments, value investing is highlighted as a strategy for stability, focusing on companies with strong fundamentals, reasonable valuations, and durable cash flows [3] Earnings Yield as a Metric - Earnings yield, calculated as annual earnings per share (EPS) divided by market price, is emphasized as a useful metric for identifying undervalued stocks [5][11] - Stocks with higher earnings yields are generally considered undervalued, while those with lower yields are seen as overpriced [6] - A stock's earnings yield is compared to the 10-year Treasury yield to assess its relative value against virtually risk-free bonds [7] Stock Screening Criteria - A primary screening criterion for stock selection is an earnings yield greater than 10%, supplemented by estimated EPS growth greater than or equal to the S&P 500 [8] - Additional criteria include an average daily trading volume of at least 100,000 and a current price of $5 or more [9][10] Selected Stocks - **Adecoagro S.A. (AGRO)**: Engaged in agriculture, with a projected 2026 sales growth of 30% and earnings growth of 452%, currently holds a Zacks Rank 1 and a Value Score of A [13] - **Fortuna Mining Corp. (FSM)**: Focused on precious and base metal mining, with a projected 2026 earnings growth of 180%, also holds a Zacks Rank 1 and a Value Score of B [14] - **National Energy Services Reunited Corp. (NESR)**: Provides oilfield solutions in the Middle East and North Africa, with a projected 2026 sales growth of 35% and earnings growth of 94%, holds a Zacks Rank 1 and a Value Score of B [15] - **Betterware de Mexico SAPI de CV (BWMX)**: A direct-to-consumer company, with projected 2026 sales growth of 23% and earnings growth of 65%, holds a Zacks Rank 1 and a Value Score of A [16]