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How to Find Highly-Ranked Value Stocks to Buy in July
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The S&P 500 and the Nasdaq hit fresh highs on Monday. The market popped through early afternoon Tuesday after Jay Powell said keeping rates high for too long would negatively impact the economy.
Wall Street is increasingly hopeful that Powell and the Fed will start cutting rates in September to help ease pressure on the slowing U.S. economy. Those hopes rose when the latest CPI figures released Thursday show June inflation dropped to 3% from 3.3% in May. After that, the big banks unofficially kick off earnings season on Friday.
The bulls are seemingly in full control, fueled by projected rate cuts and strong earnings outlooks.
Still, investors might start searching for deals in July since a healthy pullback is likely due in the near-term with the Nasdaq trading well above its 21-day moving average and at overheated RSI levels.
Thankfully, there are tons of top-ranked value stocks to buy, especially if people 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 July and beyond.
Zack's Research Wizard 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…
H.B. Fuller Company (FUL - Free Report) is a global adhesives firm and the largest pureplay within a critical behind-the-scenes industry. H.B. Fuller’s offerings include adhesives, functional coatings, and sealants designed to improve the safety and performance of an endless array of products across the entire economy.
H.B. Fuller’s adhesive and sealant solutions are used everywhere from aerospace, automotive, and electronics to food packaging, glass, and beyond.
H.B. Fuller topped our Q2 FY24 earnings estimate in late June and provided solid guidance. H.B. Fuller is projected to boost its revenue by 4% in FY24 and 5.4% in FY25 to help grow its adjusted earnings by 14% and 15%, respectively. FUL’s improved EPS outlook helps it land a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
H.B. Fuller CEO Celeste Mastin said last quarter that FUL is working to “innovate and deliver customized value-enhancing solutions to our customers while acquiring highly profitable, fast-growing businesses, like ND Industries, to expand our market presence in the most differentiated segments. As we execute our restructuring program focused on streamlining our global footprint.”
H.B. Fuller’s 1.2% dividend yield tops its highly-ranked Zacks Chemical–Specialty industry’s 0.9% average. FUL stock has easily outperformed its industry and the Zacks Basic Materials sector over the past five and ten years. H.B. Fuller also blew away fellow Chemical–Specialty stocks Axalta Coating Systems ((AXTA - Free Report) ) and AdvanSix ((ASIX - Free Report) ) in the last five years and past 12 months.
FUL trades 11% below its average Zacks price target and around 6% below its late 2023 peak. On the valuation front, H.B. Fuller trades at a 21% discount to its highs and 29% vs. its industry at 16.1X forward earnings.
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.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
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.
Image: Bigstock
How to Find Highly-Ranked Value Stocks to Buy in July
The S&P 500 and the Nasdaq hit fresh highs on Monday. The market popped through early afternoon Tuesday after Jay Powell said keeping rates high for too long would negatively impact the economy.
Wall Street is increasingly hopeful that Powell and the Fed will start cutting rates in September to help ease pressure on the slowing U.S. economy. Those hopes rose when the latest CPI figures released Thursday show June inflation dropped to 3% from 3.3% in May. After that, the big banks unofficially kick off earnings season on Friday.
The bulls are seemingly in full control, fueled by projected rate cuts and strong earnings outlooks.
Still, investors might start searching for deals in July since a healthy pullback is likely due in the near-term with the Nasdaq trading well above its 21-day moving average and at overheated RSI levels.
Thankfully, there are tons of top-ranked value stocks to buy, especially if people 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 July and beyond.
Zack's Research Wizard 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…
H.B. Fuller Company ((FUL - Free Report) )
H.B. Fuller Company (FUL - Free Report) is a global adhesives firm and the largest pureplay within a critical behind-the-scenes industry. H.B. Fuller’s offerings include adhesives, functional coatings, and sealants designed to improve the safety and performance of an endless array of products across the entire economy.
H.B. Fuller’s adhesive and sealant solutions are used everywhere from aerospace, automotive, and electronics to food packaging, glass, and beyond.
H.B. Fuller topped our Q2 FY24 earnings estimate in late June and provided solid guidance. H.B. Fuller is projected to boost its revenue by 4% in FY24 and 5.4% in FY25 to help grow its adjusted earnings by 14% and 15%, respectively. FUL’s improved EPS outlook helps it land a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
H.B. Fuller CEO Celeste Mastin said last quarter that FUL is working to “innovate and deliver customized value-enhancing solutions to our customers while acquiring highly profitable, fast-growing businesses, like ND Industries, to expand our market presence in the most differentiated segments. As we execute our restructuring program focused on streamlining our global footprint.”
H.B. Fuller’s 1.2% dividend yield tops its highly-ranked Zacks Chemical–Specialty industry’s 0.9% average. FUL stock has easily outperformed its industry and the Zacks Basic Materials sector over the past five and ten years. H.B. Fuller also blew away fellow Chemical–Specialty stocks Axalta Coating Systems ((AXTA - Free Report) ) and AdvanSix ((ASIX - Free Report) ) in the last five years and past 12 months.
FUL trades 11% below its average Zacks price target and around 6% below its late 2023 peak. On the valuation front, H.B. Fuller trades at a 21% discount to its highs and 29% vs. its industry at 16.1X forward earnings.
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.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
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