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5 High Earnings Yield Value Stocks Amid Renewed Recession Fears
The stock market is facing a sharp correction after two years of gains. Major U.S. indexes have entered correction territory, with technology and semiconductor stocks leading the decline. Investor sentiment has weakened due to uncertainty over tariffs and economic policies under the new administration.
Yesterday, the S&P 500 dropped 2.7%, hitting its lowest level since September. The Nasdaq fell 4%, marking its worst session since September 2022, while the Dow declined 2.08%. The Volatility Index surged to its highest level since August. There are concerns that the tariff uncertainty could push the economy into a recession, a possibility that President Trump has not ruled out.
With uncertainty and volatility rising, value investing could offer a strategic advantage. By focusing on fundamentally strong companies trading at attractive prices, investors can navigate market turbulence with a long-term perspective. One interesting ratio that you can consider for ferreting out attractively valued stocks is earnings yield.
ANI Pharmaceuticals, Inc., Dana Inc., Pitney Bowes, Priority Technology Holdings, Inc. and Kingstone Companies, Inc. are a few value stocks with high earnings yield that can fetch you handsome gains.
Understanding the Earnings Yield Metric
This metric, expressed in percentage, is calculated as annual earnings per share (EPS) divided by market price. This metric measures the anticipated yield (or return) from earnings for each dollar invested in a stock today. While comparing stocks, if other factors are similar, the ones with higher earnings yield are considered undervalued, while those with lower earnings yield are seen as overpriced.
While earnings yield is nothing but the reciprocal of the P/E ratio, it is albeit a little more illuminating than the traditional P/E ratio as it also facilitates the comparison of stocks with fixed-income securities. Investors often compare the earnings yield of a stock to the prevailing interest rates, such as the current 10-year Treasury yield, to get a sense of the return on investment it offers compared to virtually risk-free returns.
If the yield on a stock is lower than the 10-year Treasury yield, it would be considered overvalued relative to bonds. Conversely, if the yield on the stock is higher, it would be considered undervalued. In this situation, investing in the stock market would be a better option for a value investor.
Our Picks
Here we discuss five of the 69 stocks that qualified the screen:
ANI Pharma is a specialty pharmaceutical company focused on developing, manufacturing, and marketing both branded and generic prescription drugs. The Zacks Consensus Estimate for ANIP's 2025 and 2026 earnings implies year-over-year growth of 21.3% and 9.4%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 77 cents and 15 cents, respectively, over the past seven days. The stock sports a Zacks Rank #1 and has a Value Score of B.
Dana is a provider of technology driveline, sealing and thermal-management products. The Zacks Consensus Estimate for DAN's 2025 and 2026 earnings implies year-over-year growth of 70% and 31%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 10 cents each over the past 30 days. The stock sports a Zacks Rank #1 and has a Value Score of A.
Pitney Bowes is a global technology company powering billions of transactions — physical and digital — in the connected and borderless world of commerce. The Zacks Consensus Estimate for PBI's 2025 and 2026 earnings implies year-over-year growth of 47.5% and 8.3%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 9 cents and 8 cents, respectively, over the past 30 days. Pitney Bowes sports a Zacks Rank #1 and has a Value Score of A.
Priority Technology operates as a payment technology company in the United States. The Zacks Consensus Estimate for PRTH's 2025 and 2026 earnings implies year-over-year growth of 49% and 55%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 3 cents and 2 cents, respectively, over the past 60 days. The stock sports a Zacks Rank #1 and has a Value Score of A.
Kingstone owns an insurance company specializing in automobile, motorcycle, and homeowners' insurance, primarily serving individual customers rather than businesses. The Zacks Consensus Estimate for KINS' 2025 sales and earnings implies year-over-year growth of 36.9% and 24%, respectively. Estimates for 2025 earnings per share have moved up by 25 cents over the past 30 days. Kingstone sports a Zacks Rank #1 and has a Value Score of B.
You can get the rest of the stocks on this list by signing up now for a 2-week free trial to the Research Wizard stock picking and backtesting software. You can also create your own strategies and test them first before making investments.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
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Zacks.com featured highlights include ANI Pharmaceuticals, Dana, Pitney Bowes, Priority Technology and Kingstone
For Immediate Release
Chicago, IL – March 12, 2025 – Stocks in this week’s article are ANI Pharmaceuticals, Inc. (ANIP - Free Report) , Dana Inc. (DAN - Free Report) , Pitney Bowes (PBI - Free Report) , Priority Technology Holdings, Inc. (PRTH - Free Report) and Kingstone Companies, Inc. (KINS - Free Report) .
5 High Earnings Yield Value Stocks Amid Renewed Recession Fears
The stock market is facing a sharp correction after two years of gains. Major U.S. indexes have entered correction territory, with technology and semiconductor stocks leading the decline. Investor sentiment has weakened due to uncertainty over tariffs and economic policies under the new administration.
Yesterday, the S&P 500 dropped 2.7%, hitting its lowest level since September. The Nasdaq fell 4%, marking its worst session since September 2022, while the Dow declined 2.08%. The Volatility Index surged to its highest level since August. There are concerns that the tariff uncertainty could push the economy into a recession, a possibility that President Trump has not ruled out.
With uncertainty and volatility rising, value investing could offer a strategic advantage. By focusing on fundamentally strong companies trading at attractive prices, investors can navigate market turbulence with a long-term perspective. One interesting ratio that you can consider for ferreting out attractively valued stocks is earnings yield.
ANI Pharmaceuticals, Inc., Dana Inc., Pitney Bowes, Priority Technology Holdings, Inc. and Kingstone Companies, Inc. are a few value stocks with high earnings yield that can fetch you handsome gains.
Understanding the Earnings Yield Metric
This metric, expressed in percentage, is calculated as annual earnings per share (EPS) divided by market price. This metric measures the anticipated yield (or return) from earnings for each dollar invested in a stock today. While comparing stocks, if other factors are similar, the ones with higher earnings yield are considered undervalued, while those with lower earnings yield are seen as overpriced.
While earnings yield is nothing but the reciprocal of the P/E ratio, it is albeit a little more illuminating than the traditional P/E ratio as it also facilitates the comparison of stocks with fixed-income securities. Investors often compare the earnings yield of a stock to the prevailing interest rates, such as the current 10-year Treasury yield, to get a sense of the return on investment it offers compared to virtually risk-free returns.
If the yield on a stock is lower than the 10-year Treasury yield, it would be considered overvalued relative to bonds. Conversely, if the yield on the stock is higher, it would be considered undervalued. In this situation, investing in the stock market would be a better option for a value investor.
Our Picks
Here we discuss five of the 69 stocks that qualified the screen:
ANI Pharma is a specialty pharmaceutical company focused on developing, manufacturing, and marketing both branded and generic prescription drugs. The Zacks Consensus Estimate for ANIP's 2025 and 2026 earnings implies year-over-year growth of 21.3% and 9.4%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 77 cents and 15 cents, respectively, over the past seven days. The stock sports a Zacks Rank #1 and has a Value Score of B.
Dana is a provider of technology driveline, sealing and thermal-management products. The Zacks Consensus Estimate for DAN's 2025 and 2026 earnings implies year-over-year growth of 70% and 31%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 10 cents each over the past 30 days. The stock sports a Zacks Rank #1 and has a Value Score of A.
Pitney Bowes is a global technology company powering billions of transactions — physical and digital — in the connected and borderless world of commerce. The Zacks Consensus Estimate for PBI's 2025 and 2026 earnings implies year-over-year growth of 47.5% and 8.3%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 9 cents and 8 cents, respectively, over the past 30 days. Pitney Bowes sports a Zacks Rank #1 and has a Value Score of A.
Priority Technology operates as a payment technology company in the United States. The Zacks Consensus Estimate for PRTH's 2025 and 2026 earnings implies year-over-year growth of 49% and 55%, respectively. Estimates for 2025 and 2026 earnings per share have moved up by 3 cents and 2 cents, respectively, over the past 60 days. The stock sports a Zacks Rank #1 and has a Value Score of A.
Kingstone owns an insurance company specializing in automobile, motorcycle, and homeowners' insurance, primarily serving individual customers rather than businesses. The Zacks Consensus Estimate for KINS' 2025 sales and earnings implies year-over-year growth of 36.9% and 24%, respectively. Estimates for 2025 earnings per share have moved up by 25 cents over the past 30 days. Kingstone sports a Zacks Rank #1 and has a Value Score of B.
You can get the rest of the stocks on this list by signing up now for a 2-week free trial to the Research Wizard stock picking and backtesting software. You can also create your own strategies and test them first before making investments.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2428149/5-high-earnings-yield-value-stocks-amid-renewed-recession-fears
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.