Markets are navigating a tricky mix of cautious optimism and lingering geopolitical risk. A three-week extension of the ceasefire between Israel and Lebanon has been announced. The pause in fighting, involving Iran-backed Hezbollah, offers a temporary break in hostilities. That said, the situation is far from resolved. Key issues—ranging from Iran’s nuclear ambitions to control over the strategically critical Strait of Hormuz—remain unsettled. The conflict has also spilled into maritime tensions, with both sides seizing commercial vessels, turning the region into a fragile naval standoff. This keeps global energy routes and supply chains on edge.
Markets remain highly sensitive to headlines from the region.At the same time, investors are trying to shift focus back to fundamentals, particularly corporate earnings. But geopolitical developments continue to interrupt that narrative, driving volatility.
In this uncertain environment, value investing offers a disciplined way to navigate volatility. Value investing means buying stocks that are priced below what they are really worth. It works on the idea that markets often misprice stocks, giving investors a chance to buy low and profit later.
Investors can consider value stocks like Avnet, Inc. AVT, Antero Resources Corporation AR, Navigator Holdings Ltd. NVGS, Nexa Resources S.A. NEXA and Adecoagro S.A. AGRO that have high earnings yield.
Unlock Value With Earnings Yield Metric
A simple tool that value investors use is earnings yield. It shows how much profit a company makes for each dollar of its stock price. Earnings yield, expressed in percentage, is calculated as (Annual Earnings per Share/Market Price) x 100. It is the reverse of the price-to-earnings (P/E) ratio. A high earnings yield may mean the stock is undervalued. A low yield could mean the stock is too expensive.
Investors can also use earnings yield to compare stocks with bond returns like the 10-year Treasury yield. If the stock market's earnings yield is higher than the bond yield, stocks might be more attractive. With regard to this, earnings yield can be more illuminating than the traditional P/E ratio, as the former facilitates the comparison of stocks with fixed-income securities.
Setting the Right Filters
We have set an Earnings Yield greater than 10% as our primary screening criterion but it alone cannot be used for picking stocks that have the potential to generate solid returns. So, we have added the following parameters to the screen:
Estimated EPS growth for the next 12 months greater than or equal to the S&P 500: This metric compares the 12-month forward EPS estimate with the 12-month actual EPS.
Average Daily Volume (20 Day) greater than or equal to 100,000: High trading volume implies that a stock has adequate liquidity.
Current Price greater than or equal to $5.
Buy-Rated Stocks: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have been known to outperform peers in any type of market environment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Our Picks
Here we highlight five of the 44 stocks that qualified the screening:
Avnet is a leading distributor of electronic components and computer products, serving customers across original equipment manufacturers, electronic manufacturing services providers, original design manufacturers, and beyond. The Zacks Consensus Estimate for AVT’s fiscal 2026 and 2027 earnings implies year-over-year growth of 34% and 48%, respectively. EPS estimates for the current and next fiscal have moved up by 25 and 32 cents, respectively, over the past 90 days. Avnet currently sports a Zacks Rank #1 and has a Value Score of B.
Antero Resources is an independent explorer, primarily engaged in the acquisition and development of natural gas, natural gas liquids and oil resources in the Appalachian Basin. The Zacks Consensus Estimate for AR’s 2026 sales and earnings implies year-over-year growth of 23% and 153%, respectively. EPS estimates for the current year have moved up by 27 cents over the past seven days. Antero Resources currently carries a Zacks Rank #2 and has a Value Score of A.
Navigator Holdings provides international seaborne transportation and regional distribution services of liquefied petroleum gas, petrochemical gases and ammonia for energy companies, industrial users and commodity traders. The Zacks Consensus Estimate for NVGS’ 2026 and 2027 earnings implies year-over-year growth of 32% and 33%, respectively. EPS estimates for the current and next fiscal have moved up by 3 and 25 cents, respectively, over the past 60 days. Navigator Holdings currently carries a Zacks Rank #2 and has a Value Score of B.
Nexa Resources is an integrated zinc producer, engaged in developing and operating mining and smelting assets primarily in Latin America. The Zacks Consensus Estimate for NEXA’s 2026 sales and earnings implies year-over-year growth of 8% and 123%, respectively. EPS estimates for the current year have moved up by 16 cents over the past seven days. Nexa Resources currently carries a Zacks Rank #2 and has a Value Score of A.
Adecoagro isengaged in farming crops and other agricultural products, cattle and dairy operations, sugar, ethanol and energy production and land transformation. The Zacks Consensus Estimate for AGRO’s 2026 EPS has moved north by 18 cents in the past 60 days to $1.39, implying year-over-year growth of 872%. Adecoagro currently carries a Zacks Rank #2 and has a Value Score of A.
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Avnet, Inc. (AVT): Free Stock Analysis Report
Adecoagro S.A. (AGRO): Free Stock Analysis Report
Antero Resources Corporation (AR): Free Stock Analysis Report
Navigator Holdings Ltd. (NVGS): Free Stock Analysis Report
Nexa Resources S.A. (NEXA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).