The Nasdaq jumped 2.3% to a record close on Monday before jumping to fresh intraday highs on Tuesday. Wall Street is diving back into the risk-end of the market to start the week, sending everything from AI and semiconductor stocks to bitcoin soaring.
Wall Street is celebrating as oil prices slip on Iran deal optimism. Plus, talks between the U.S. and China are reportedly going well ahead of Thursday’s meeting between Trump and Xi.
Investors looking to buy stocks now as the market charges to new all-time highs should consider best-in-class value stocks that boast other attractive fundamentals.
Today, we dive into how investors can find highly ranked—Zacks Rank #1 (Strong Buy) or #2 (Buy)—value stocks to buy now and hold for long-term upside.
Screen Basics: Finding the Best Value Stocks to Buy Now
The screen we are digging into today comes loaded with the Research Wizard and aims to sort through highly-ranked Zacks stocks to find some of the top value names.
This value-focused screen searches only for stocks that boast Zacks Rank #1 (Strong Buys) or #2 (Buys). It also focuses on stocks with price-to-earnings (P/E) ratios under the median for its industry. The screen also looks for stocks with price-to-sales (P/S) ratios under the median for its industry to help lock in relative value compared to its peers, since basing it off the wider market is not always the most useful tool.
The screen then digs into quarterly earnings rates above the median for its industry. This particular Zacks screen also uses a special blend of upgrades and estimates revisions to select the best seven stocks in this list.
The screen basics are listed below…
· Only Zacks Rank #1 (Strong Buy) or #2 (Buy) Stocks
· P/E (using 12-month EPS) – Under the Median for its Industry
· P/S – Under the Median for its Industry
· Percentage Change Act. EPS Q(0)/Q(-1)
· Rating Change and Revisions Factors (to help narrow the list to the 7 best stocks in this list)
This strategy comes loaded with the Research Wizard and it is called bt_sow_value_method1. It can be found in the SoW (Screen of the Week) folder.
The screen is simple, yet powerful. Here is one of the seven stocks that made it through this week’s screen…
AI Infrastructure Stock HPE is a Must-Buy for Stellar Value and Growth
Hewlett Packard Enterprise’s HPE earnings and revenue growth outlook is impressive as it rides the AI capex boom, fueled by hyperscalers such as Meta, Microsoft, and other tech and AI titans. Despite the bubble talk, $750 billion in new AI spending initiatives were announced in August alone, adding to the trillions that have already been spent and the trillions more to come down the pike.
