4 High Earnings Yield Stocks That Value Investors Should Buy Now

Core Viewpoint - The Federal Reserve has initiated its first rate cut in four years, lowering benchmark rates by half a percentage point, which has led to optimism on Wall Street, but concerns about the global economy and U.S. markets remain [1] Group 1: Earnings Yield and Investment Strategy - Earnings yield is calculated by dividing a company's earnings per share (EPS) by its current stock price, indicating the profitability of an investment [2] - A high earnings yield suggests that a stock may be undervalued, while a low earnings yield may signal overvaluation [2] - Earnings yield can be used for comparative analysis against the 10-year Treasury yield; when the earnings yield of the market index exceeds the bond yield, it may indicate favorable conditions for stock investment [3] Group 2: Stock Screening Criteria - An earnings yield greater than 10% is set as a primary screening criterion, supplemented by estimated EPS growth, average daily volume, current price, and buy-rated stocks [4] - 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 [4] Group 3: Selected Stocks - Pilgrim's Pride Corporation (PPC): Engaged in processing and distribution of chicken products, with a Zacks Consensus Estimate for 2024 earnings implying year-over-year growth of 183.4% [5] - Pfizer (PFE): A leading drugmaker with a strong pipeline, expected to see a 42.4% year-over-year growth in 2024 earnings [6] - IAMGOLD Corp. (IAG): A gold exploration and mining company with a 433.3% year-over-year growth estimate for 2024 earnings [6] - AdvanSix Inc. (ASIX): Manufacturer of nylon and chemical products, with expected sales growth of 2% and 8% for 2024 and 2025, respectively [7]