Best Income Stocks to Buy for June 22nd

The article highlights three Zacks Rank #1 stocks with improving earnings estimates and dividend yields: Yankuang Energy (+30.5% consensus EPS revision, 1.1% yield), Select Water Solutions (+46.2%, 1.6% yield), and Fomento Economico Mexicano (+20.2%, 1.89% yield). The piece is primarily a stock-picking screen rather than new company-specific news, but it reinforces positive fundamentals and income appeal for each name.

Analysis

The common setup here is not just improving earnings revisions; it’s that the market is rewarding businesses with visible cash generation and relatively defensive capital allocation in a tape that still penalizes cyclicality without a clear balance-sheet story. That favors names where the consensus revision cycle can persist for multiple quarters, because upward estimate momentum tends to attract incremental factor ownership from quality/income screens rather than just fundamental buyers.

WTTR is the most interesting second-order beneficiary because it sits in an infrastructure-like layer of energy activity: if North American production stays resilient, water handling volumes can remain sticky even if drilling growth slows. That makes the earnings upgrade more durable than a simple commodity beta trade, and it also creates a subtle relative-value opportunity versus higher-beta oilfield services, where investors usually demand a larger discount for the same macro exposure.

FMX looks like a steadier compounding story where dividend support is likely less important than the embedded optionality from operational efficiency and mix improvement across a broad consumer platform. The market may be underestimating how much persistent estimate beats can re-rate a low-volatility compounder when local currencies and input costs are not moving against it simultaneously. In that sense, the stock can work even in a choppy macro backdrop because the investment case is driven more by internal execution than by multiple expansion.

The contrarian risk is that these are all crowded “quality plus yield” expressions that can stall if Treasury yields back up or if the broader market rotates back into long-duration growth. The revisions momentum is also inherently time-sensitive: once the next-quarter bar gets raised enough, incremental upside can compress quickly, so the best entry is usually on post-rally consolidation rather than chasing strength. If the estimate trend cools over the next 4-8 weeks, the relative-outperformance case weakens fast.

Key Decisions for Investors

• Go long WTTR on a 2-4 week pullback; target a 6-10% upside move as revisions momentum and infrastructure-like cash flow keep it in favor, with a stop if the stock gives back the prior breakout level.
• Overweight FMX versus staple peers for a 1-3 month horizon; the setup favors a low-volatility compounder re-rating, with downside best managed through a relative-value basket rather than an outright position.
• Pair trade: long WTTR / short a higher-beta oilfield services basket for 1-2 quarters; the thesis is that water infrastructure exposure carries cleaner earnings visibility and less commodity beta, improving risk-adjusted return.
• If buying either name outright, scale in only after market-wide yield spikes or factor rotations; those events typically create better entry points than chasing after consensus revisions are already widely recognized.
• Use a trailing stop around 8-12% on both names; the key risk is estimate revisions flattening, which can quickly unwind the income-quality premium.