Zacks.com featured highlights include DaVita, Ford, Centerra, Southwest Airlines and Patria Investments

For Immediate Release

Chicago, IL – February 20, 2026 – Stocks in this week’s article are DaVita DVA, Ford F, Centerra Gold CGAU, Southwest Airlines LUV and Patria Investments Ltd. PAX.

5 Value Stocks to Buy Now as Fed Debates Next Rate Move

The S&P 500 index closed higher yesterday as investors tried to make sense of mixed signals from the Federal Reserve. Policymakers kept interest rates unchanged at their latest meeting, but there is no clear agreement on what comes next. While several officials are open to raising rates again if inflation remains sticky, others are willing to cut if price pressures continue to ease. At the same time, discussions around artificial intelligence have added another layer of complexity.

Recent data has only added to the uncertainty. Inflation cooled more than expected in January, yet job growth stayed strong and unemployment fell. With the Fed’s next decision due in mid-March, volatility may persist. In this backdrop, value investing—focused on strong fundamentals, reasonable valuations and long-term strength—is the need of the hour.

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. DaVita, Ford, Centerra Gold, Southwest Airlines and Patria Investments Ltd. are a few solid high-value picks with high earnings yields.

Earnings Yield Strength

One simple tool 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.

Our Picks

Here we highlight five of the 55 stocks that qualified the screening:

DaVita is a leading provider of dialysis services in the United States to patients suffering from chronic kidney failure, also known as end-stage renal disease. The Zacks Consensus Estimate for DaVita’s 2026 and 2027 earnings implies year-over-year growth of 31% and 19%, respectively. EPS estimates for the current and next year have moved up by $1.59 and $2.38, respectively, over the past 30 days. DaVita currently sports a Zacks Rank #1 and has a Value Score of A.

Ford is one of the world’s legacy automakers and the third-largest seller in the United States by sales volume.The Zacks Consensus Estimate for Ford’s 2026 and 2027 earnings implies year-over-year growth of 40% and 19%, respectively. EPS estimates for the current and next year have moved up by 5 cents each over the past 30 days. Ford currently sports a Zacks Rank #1 and has a Value Score of A.

Centerra Gold is a gold mining company, focused on operating, exploring and acquiring gold properties principally in North America, Asia and other markets. The Zacks Consensus Estimate for CGAU’s 2026 and 2027 earnings implies year-over-year growth of 45% and 57%, respectively. EPS estimates for the current and next year have moved up by 5 cents and 17 cents, respectively, over the past 30 days. Centerra Gold currently sports a Zacks Rank #1 and has a Value Score of B.

Southwest Airlines is a passenger airline that provides scheduled air transportation in the United States and “ten near-international” markets. The Zacks Consensus Estimate for LUV’s 2026 and 2027 earnings implies year-over-year growth of 362% and 17%, respectively. EPS estimates for the current and next year have moved up by 17 cents and 8 cents, respectively, over the past seven days. Southwest Airlines currently sports a Zacks Rank #1 and has a Value Score of B.

Patria Investments is a private markets asset manager offering private equity, infrastructure, co-investments, real estate and credit strategies. The Zacks Consensus Estimate for PAX’s 2026 and 2027 earnings implies year-over-year growth of 25% and 17%, respectively. EPS estimates for the current and next year have moved up by 4 cents and 7 cents, respectively, over the past 30 days. Patria Investments currently sports a Zacks Rank #1 and has a Value Score of A.

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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2871985/5-value-stocks-to-buy-now-as-fed-debates-next-rate-move

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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/performance for information about the performance numbers displayed in this press release.

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market’s next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

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Ford Motor Company (F) : Free Stock Analysis Report

Southwest Airlines Co. (LUV) : Free Stock Analysis Report

DaVita Inc. (DVA) : Free Stock Analysis Report

Patria Investments Limited (PAX) : Free Stock Analysis Report

Centerra Gold Inc. (CGAU) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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