The stock market bulls have held their ground during a sideways, but up-and-down start to 2025. It is unclear what will move the market meaningfully in either direction next. The January CPI release on Wednesday and Nvidia’s earnings results next week are candidates.
No matter what happens in the near term, the bullish stock market fundamentals remain in place for the foreseeable future.
Still, investors might not want to buy stocks that are a bit overheated and potentially pricey as the stock market floats near its all-time highs.
Thankfully, there are a ton of great value stocks to buy right now if you know where to look.
Today we show investors how to screen for stocks that offer the potentially winning combination of impressive value and improving earnings outlooks to buy in February and throughout 2025.
Screen Basics
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 pretty simple, yet powerful. Here is one of the seven stocks that made it through this week's screen…
Why This Semiconductor Company is a Great Value Stock to Buy Now
Cirrus Logic, Inc. CRUS is a fabless semiconductor supplier that specializes in low-power, high-precision mixed-signal processing solutions.
Cirrus Logic is attempting to grow by preserving its leadership in smartphone audio. CRUS is also focused on boosting the amount of high-performance mixed-signal (HPMS) content in smartphones and penetrating into new and existing markets and applications.
Image Source: Zacks Investment Research
Cirrus Logic crushed our earnings estimates by an average of 50% in the trailing four quarters, including a 24% beat for its Q3 FY25 on February 4. Cirrus Logic’s earnings revisions have jumped since its release to help it land a Zacks Rank #2 (Buy), with its Q4 estimate 11% higher and FY25 up 7%.
Cirrus Logic stock has ripped nearly 1,400% higher in the last 15 years to blow away the Tech sector’s 640% climb.
CRUS stock has underperformed during the trailing five years, dragged down by a pullback from its August records. The semiconductor stock is finding support at its 21-month moving average after falling 30% from its all-time highs.
Image Source: Zacks Investment Research
The recent drop mixed with solid earnings growth has Cirrus Logic trading at a 50% discount to its 10-year highs and a 30% discount to the Tech sector at 18.8X forward 12-month earnings. CRUS trades in line with its 10-year median.
Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.
Click here to sign up for a free trial to the Research Wizard today.
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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: www.zacks.com/performance_disclosure
Zacks' Super Screen
It's hard to believe, even for us at Zacks. But since 2000, while the market gained +7.7% per year, one of our top stock-picking screens averaged +56.7% per year.
In fact, our Top 10 screens substantially outperformed the market with an average gain of +35.6%.
Free – See the Stocks They're Turning Up for Today >>Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
