Zacks.com featured highlights include KB Home, General Motors, The Greenbrier, JD.com and Barrick Gold

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, October 29th:

Iamgold IAG: This international gold exploration and mining company based in Canada, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its cuurent year earnings increasing 35.9% over the last 60 days.

Iamgold Corporation Price and Consensus

Iamgold Corporation price-consensus-chart | Iamgold Corporation Quote

Iamgold’ shares gained 43.0% over the last three month compared with the S&P 500’s gain of 6.5%. The company possesses a Momentum Score of A.

Iamgold Corporation Price

Iamgold Corporation price | Iamgold Corporation Quote

Third Coast Bancshares TCBX This commercially focused, bank holding company operating primarily in the Greater Houston, Dallas-Fort Worth and Austin-San Antonio markets, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.1% over the last 60 days.

Third Coast Bancshares, Inc. Price and Consensus

Third Coast Bancshares, Inc. price-consensus-chart | Third Coast Bancshares, Inc. Quote

Third Coast Bancshares’ shares gained 37.7% over the last three month compared with the S&P 500’s gain of 6.5%. The company possesses a Momentum Score of A.

Third Coast Bancshares, Inc. Price

Third Coast Bancshares, Inc. price | Third Coast Bancshares, Inc. Quote

FinWise Bancorp FINW This bank holding company headquartered in Murray, Utah is a lender to and takes deposits from consumers and small businesses, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.6% over the last 60 days.

FinWise Bancorp Price and Consensus

FinWise Bancorp price-consensus-chart | FinWise Bancorp Quote

FinWise Bancorp’ shares gained 33.4% over the last three month compared with the S&P 500’s gain of 6.5%. The company possesses a Momentum Score of A.

FinWise Bancorp Price

FinWise Bancorp price | FinWise Bancorp Quote

See the full list of top ranked stocks here

Learn more about the Momentum score and how it is calculated here.

Zacks Investment Research

Last month, the Federal Reserve made a notable 50-basis point rate cut, marking its first reduction since March 2020. Investors remain optimistic that the Fed might enact two additional cuts this year, but concerns over a slowing economy have raised doubts about the pace of these reductions. With the U.S. presidential election just weeks away, market volatility is expected to rise. In this climate, value investing could be a sound strategy, allowing investors to buy undervalued stocks and potentially realize substantial returns as prices align with the stocks’ fundamental values.

A commonly used metric to identify undervalued stocks with strong upside potential is the price-to-earnings (P/E) ratio. However, another valuable metric for spotting attractively priced stocks is earnings yield. High earnings yield stocks, such as — Suzano S.A. SUZ, Mr. Cooper Group Inc. COOP, IAMGOLD Corp IAG and Valaris Limited VAL — offer the potential for substantial long-term gains.

Understanding Earnings Yield Strength

Earnings yield is a critical measure for investors focusing on return rates. Expressed as a percentage, it is calculated by dividing annual earnings per share (EPS) by the market price of the stock. This metric reveals the expected return from earnings for each dollar invested in a stock. When comparing stocks with similar characteristics, those with higher earnings yields are typically viewed as undervalued, while those with lower yields are seen as overpriced.

Although earnings yield is the inverse of the P/E ratio, it offers additional insight, particularly when comparing stocks with fixed-income securities. Investors often compare a stock’s earnings yield to current interest rates, like the 10-year Treasury yield, to assess its return relative to risk-free alternatives. If a stock’s yield is lower than the 10-year Treasury yield, it may be considered overvalued relative to bonds. Conversely, a higher yield suggests undervaluation, making the stock market a more appealing option for value investors.

Screening Parameters

We have set Earnings Yield greater than 10% as our primary screening criterion but it alone cannot be used for picking stocks that have the potential of generating 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 Choices

Below, we have highlighted four of the 30 stocks that made it through the screen:

Suzano produces and sells eucalyptus pulp and paper products. Suzano recently acquired two U.S. paperboard plants, adding 420,000 metric tons to annual capacity and gaining strategic wood, energy and logistical advantages. It also purchased a 15% stake in Lenzing to expand in premium cellulosic fibers. Additionally, Suzano’s $2.8-billion Cerrado project, now operational, boosted eucalyptus pulp capacity by 2.55 million tons, strengthening its pulp market position.

The Zacks Consensus Estimate for 2024 and 2025 EPS implies year-over-year growth of 61% and 110%, respectively. The consensus mark for 2024 and 2025 EPS has been revised upward by $2.08 and $5.98, respectively, over the past 30 days. SUZ currently sports a Zacks Rank #1 and a Value Score of A.

Cooper Group is engaged in non-banking services for mortgage loans. The strategic acquisitions of Home Point Capital Inc. and Roosevelt Management Company, LLC in 2023 will boost the company’s servicing business. COOP is well-placed to leverage its scale (it is one of the largest non-bank mortgage servicers in the United States) and bolster its top-line growth, especially as the Federal Reserve resorts to rate cuts.

The Zacks Consensus Estimate for 2024 and 2025 sales implies year-over-year growth of 19% and 27%, respectively. In the past seven days, the consensus mark for 2024 and 2025 EPS has been revised upward by 19 cents and 2 cents to $10.17 and $13.59, respectively. COOP currently sports a Zacks Rank #1 and has a Value Score of B.

IAMGOLD is an international gold exploration and mining company.The company remains focused on maximizing production, extending the life of its current mines, and advancing development and exploration projects. Key operational projects over the coming years include ramping up Westwood for safe access to mining areas impacted by 2020 seismic activity, as well as mill and plant upgrades, fleet enhancements, optimized water management and pit expansions at Essakane. These initiatives aim to control costs and boost efficiency.

The Zacks Consensus Estimate for 2024 and 2025 sales implies year-over-year growth of 69% and 32%, respectively. In the past seven days, the consensus mark for 2024 and 2025 EPS has been revised upward by 2 cents and 3 cents to 53 cents and 77 cents, respectively. IAG currently sports a Zacks Rank #1 and has a Value Score of A.

Valaris provides offshore drilling services and possesses a varied fleet of rigs, including ultra-deepwater drillships, versatile semisubmersibles, and modern shallow-water jackups. With the industry's largest and highest specification fleet covering both floaters and jackups, Valaris maintains a significant presence in key offshore basins, fostering deep customer relationships. The company's robust balance sheet ensures flexibility in capital allocation.

The Zacks Consensus Estimate for 2024 and 2025 sales implies year-over-year growth of 29% and 25%, respectively. The consensus mark for 2024 and 2025 EPS implies a year-over-year jump of 290% and 156%, respectively. VAL currently carries a Zacks Rank #2 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.

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.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance

Zacks Investment Research

Element Solutions Inc. ESI recorded third-quarter 2024 earnings (as reported) of 17 cents per share. This compares favorably with a loss of 13 cents in the year-ago quarter. Adjusted earnings per share came in at 39 cents in the quarter, beating the Zacks Consensus Estimate of 38 cents.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company generated net sales of $645 million, up 7.6% year over year. The figure beat the Zacks Consensus Estimate of $618.8 million. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin declined 30 basis points to 22.1%.

Element Solutions Inc. Price, Consensus and EPS Surprise

Element Solutions Inc. price-consensus-eps-surprise-chart | Element Solutions Inc. Quote

ESI’s Segment Highlights

Net sales in the Electronics segment increased 14% year over year to $419.1 million in the reported quarter, with organic net sales up 9% from the previous year's reported figure. The figure beat the consensus estimate of $396.9 million.

In the Industrial & Specialty segment, net sales fell 3% year over year to $225.9 million, with organic net sales remaining flat. The figure topped the consensus of $221.8 million.

ESI’s Financial Position

Element Solutions ended the quarter with cash and cash equivalents of $376 million, up 14% year over year. Long-term debt was $1,914.7 million at the end of the quarter, down 5.5%.

Cash from operating activities was $98.5 million in the reported quarter.

ESI’s Outlook

ESI expects adjusted EBITDA for full-year 2024 to be between $535 million and $540 million. The company anticipates free cash flow of $280 million to $300 million for the year.

ESI’s Stock Price Performance

Shares of Element Solutions have gained 46.6% in a year against a 2% increase of the industry.

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:

Greenland Technologies GTEC: This company which is a developer and a manufacturer of drivetrain systems for material handling machineries and electric vehicles, as well as electric industrial vehicles, has seen the Zacks Consensus Estimate for its current year earnings increasing 64.1% over the last 60 days.

Greenland Technologies Holding Corporation Price and Consensus

Greenland Technologies Holding Corporation price-consensus-chart | Greenland Technologies Holding Corporation Quote

Iamgold IAG: This international gold exploration and mining company based in Canada, has seen the Zacks Consensus Estimate for its current year earnings increasing 35.9% over the last 60 days.

Iamgold Corporation Price and Consensus

Iamgold Corporation price-consensus-chart | Iamgold Corporation Quote

AAC Technologies AACAY: This company which is a micro component solutions provider for communications and consumer electronics market, has seen the Zacks Consensus Estimate for its current year earnings increasing 11.1% over the last 60 days.

AAC Technologies Holdings Inc. Price and Consensus

AAC Technologies Holdings Inc. price-consensus-chart | AAC Technologies Holdings Inc. Quote

Matson MATX: This ocean transportation and logistics company which offers shipping services in Hawaii, Guam, and Micronesia islands and expedited service from China to southern California, has seen the Zacks Consensus Estimate for its current year earnings increasing 9.3% over the last 60 day.

Matson, Inc. Price and Consensus

Matson, Inc. price-consensus-chart | Matson, Inc. Quote

Torrid Holdings CURV: This company which is a direct-to-consumer brand of apparel, intimates and accessories principally in North America, has seen the Zacks Consensus Estimate for its current year earningsincreasing 5.6% over the last 60 days.

Torrid Holdings Inc. Price and Consensus

Torrid Holdings Inc. price-consensus-chart | Torrid Holdings Inc. Quote

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment Research

Harbour Energy plc HBRIY is altering its portfolio to reduce exposure in the North Sea area owing to the increased taxes on oil and gas. According to reports, the company is set to go ahead with its plan by selling the stakes in Armada, Everest, Lomond, Catcher and Tolmount fields in the North Sea. This move comes ahead of the U.K.’s Labour government’s plans to hike taxes in the oil and gas sector, intending to use the proceeds to finance renewable energy projects.

HBRIY to Expand Beyond the North Sea

In December, HBRIY completed a major acquisition deal of Wintershall Dea’s assets located outside Russia that will help the company diversify outside the North Sea. The deal included the purchase of assets in Denmark, Egypt, Germany, Libya, Algeria, Argentina, Mexico and Norway along with the carbon dioxide capture and storage licenses. The $11.2 billion cash and stock deal almost doubled HBRIY’s production capacity, and the share price has gained more than 14% over the past 12 months.

Olin Corporation OLN posted a third-quarter 2024 loss of $24.9 million or loss of 21 cents per share. This compares unfavorably with a profit of $104.1 million or 82 cents per share in the year-ago quarter. The loss per share missed the Zacks Consensus Estimate of earnings of 3 cents.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The chemical maker’s revenues fell roughly 4.9% year over year to $1,589.5 million in the quarter. It beat the Zacks Consensus Estimate of $1,571.1 million.

Olin Corporation Price, Consensus and EPS Surprise

Olin Corporation price-consensus-eps-surprise-chart | Olin Corporation Quote

Olin’s Segment Review

Chlor Alkali Products and Vinyls: In the third quarter, revenues amounted to $871.6 million, down around 10.1% year over year. It beat the Zacks Consensus Estimate of $851.5 million. The third quarter segment performance was adversely impacted by lost sales related to Hurricane Beryl and lower pricing, mainly caustic soda.

Epoxy: Revenues in the division went down around 11.3% year over year to $285.1 million on lower volumes. It missed the consensus estimate of $315.6 million. The top line decreased due to lower volumes, including Hurricane Beryl-related sales losses.

Winchester: Revenues rose around 13.8% year over year to $432.8 million. It beat the consensus estimate of $414.9 million. Sales grew due to increasing international military sales, military project revenues and White Flyer sales, slightly offset by decreasing commercial ammunition sales.

OLN’s Financials

The cash balance as of Sept. 30, 2024 was $225.9 million. At the end of the third quarter, Olin had $2.7 billion in net debt and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio of 3X. As of Sept. 30, 2024, OLN had around $1 billion in available liquidity.

In the third quarter, the company repurchased roughly 1 million shares of common stock for $45.4 million. As of Sept. 30, 2024, Olin has approximately $0.7 billion available for share repurchase authorization.

Olin’s Q4 Outlook

The company expects lower demand for caustic soda, although global demand is gradually improving. The company anticipates a seasonal reduction in adjusted EBITDA for its Chemical businesses for the quarter, excluding the impact of Hurricane Beryl.

OLN expects adjusted EBITDA to be between $170 million and $200 million. Olin maintains a value-focused commercial model and capital allocation approach to drive cash flows and prioritize shareholder returns.

OLN’s Price Performance

Shares of Olin have declined 2.5% in the past year against a 6.7% rise of the industry.