With core inflation rising to 2.6% in September and the Federal Reserve signaling more rate hikes ahead, investors are turning to value stocks with strong earnings yields. Five stocks—Honda, Micron, Avnet, Delek US Holdings, and Plains GP—are highlighted as value picks with earnings yields above 10%, strong EPS growth projections, and upward earnings estimate revisions.

Docusign (DOCU) has outperformed the market with a 54.3% gain over six months, driven by strong adoption of its Intelligent Agreement Management (IAM) platform, which contributed 15.1% to ARR in Q2'27. The company reported 16% adjusted operating income growth and 35% free cash flow growth year-over-year. However, gross margin pressure from cloud migration investments and intensifying AI-driven competition pose risks. DOCU carries a Zacks Rank #3 (Hold) with fiscal 2027 revenue expected to grow 8.8% year-over-year.

Avnet (AVT) delivered robust fiscal Q4 2026 results with sales surging 47.7% to $8.3 billion and adjusted operating margin expanding to 3.8%. The company forecasts Q1 FY2027 sales of $9-$9.3 billion with adjusted EPS of $2.80-$2.90, representing 241% year-over-year earnings growth. AVT stock has outperformed its industry significantly while trading at a valuation discount.

Avnet (AVT) achieved record IP&E sales in fiscal Q4 2026 with full-year revenues approaching $5 billion and forecasts 10% sequential growth for Q1 fiscal 2027. Despite an 88.5% one-year stock surge, AVT trades below industry valuation multiples at 0.23X P/S versus 0.37X industry average, earning a Zacks Rank #1 Strong Buy rating. The company benefits from AI infrastructure demand, expanding margins, and strong performance across all end markets.

Zacks highlights strong stock performance from its research methodologies, with HF Sinclair surging 49% after a Rank upgrade and FirstCash gaining 36.3% since the 2026 Top 10 list launch. The article reviews market conditions showing a shift toward value stocks amid inflation concerns and elevated Treasury yields, while showcasing performance of various Zacks portfolios including the Focus List, ECAP, and ECDP.

The article identifies five stocks trading below their book value with strong growth prospects: Banco Macro (26.6% projected EPS growth), Avnet (31.3%), EnerSys (15.0%), General Motors (13.3%), and Huntington Ingalls Industries (14.4%). All five stocks have Value Scores of A or B and Zacks Ranks of #1 or #2, suggesting they are undervalued with upside potential.

CDW reported solid Q2 2026 results with 10% YoY sales growth but faced 70 bps gross margin decline due to higher-mix hardware infrastructure and enterprise orders. The company expects operating leverage improvements in H2 2026 through efficiency initiatives. Competitors ServiceNow, Accenture, and Avnet also face margin pressures from AI adoption and infrastructure costs, though some show stabilization efforts.

Avnet (AVT), an electronic components distributor, has earned a Zacks Rank #1 (Strong Buy) rating with a Momentum Style Score of B. The stock has outperformed its industry and the broader market, rising 7.24% weekly, 11.07% monthly, and 91.44% over the past year. Recent earnings estimate revisions have been positive, with consensus estimates increasing from $7.30 to $10.45 in the past 60 days, supporting its strong momentum profile.

As bond yields rise and the Fed signals potential further rate hikes, a value-focused investment approach is recommended. Five stocks with earnings yields above 10%, buy ratings, and positive EPS growth projections are highlighted: Honda Motor, National Energy Services Reunited, Ternium S.A., Avnet Inc., and Star Bulk Carriers.

Super Micro Computer (SMCI) and Avnet Inc. (AVT) are two prominent AI infrastructure companies with different business models. SMCI expects AI solutions to exceed 80% of revenue with a record backlog and guided fiscal 2027 sales of $65-72 billion. AVT benefits from broad electronic component distribution with strong growth across data center and networking. While SMCI offers higher AI exposure, AVT is considered the safer bet due to diversified end-market exposure, stronger earnings growth expectations (240% vs 202%), and improving operating margins. Both stocks hold Zacks Rank #1 (Strong Buy) ratings.

Zacks recommends five Zacks Rank #1 stocks that have surged year-to-date while remaining undervalued: Super Micro Computer, Archer-Daniels-Midland, The Allstate, Centene, and Avnet. These stocks combine strong growth projections with attractive valuations relative to industry and S&P 500 benchmarks, positioning them for continued gains in 2026.

Avnet (AVT) continues to capitalize on robust AI infrastructure demand, with fiscal 2026 IP&E sales reaching $4.6 billion, up from $4 billion. The company expects fiscal 2027 Q1 adjusted EPS of $2.80-$2.90, representing 241% year-over-year growth. AVT stock has surged 85.9% year-to-date and trades at a P/S multiple of 0.21X, below the industry average of 0.34X, earning a Zacks Rank #1 (Strong Buy) rating.