The stock market is attempting to decide when to make its first decisive move of 2025. JPMorgan and other big banks kick off earnings season on Wednesday, with chip-making powerhouse Taiwan Semi set to release its potential bellwether earnings report on Thursday.

The market needs big tech and other key areas to provide strong earnings guidance or risk a healthy recalibration to adjust valuations.

No matter what happens in the near term, the bull case for 2025 appears to remain in place.

On top of that, investors don’t need to chase pricey stocks in the early weeks of 2025 because there are a ton of great value stocks to buy.

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 January 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 Consulting Firm is a Great Buy-and-Hold Value Stock

Booz Allen Hamilton Holding Corporation (BAH) is a consulting industry standout operating across critical civil, defense, and national security priorities. Booz Allen Hamilton serves a diverse base of federal government clients helping protect soldiers in combat, keep national infrastructure secure, advance cyber capabilities, enhance digital services, and more. Booz Allen Hamilton also has commercial clients spanning various industries including aerospace, health and life sciences, energy, financial services, and transportation.

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Booz Allen Hamilton grew its sales at a compound annual growth rate of 7.4% between FY20 and FY24. The consulting giant benefits from multi-year contracts that provide a steady revenue stream and reduce exposure to market volatility. On top of that, U.S. government contracts are often renewed due to the sensitive nature of the services provided.

Booz Allen Hamilton is projected to grow its revenue by 13% in its fiscal 2025 and 7% in FY26. On the earnings front, BAH is expected to expand its adjusted earnings per share by 14% and 11%, respectively.

BAH has beaten our EPS estimates every quarter outside of two in the last five years and its upward earnings revisions earn it a Zacks Rank #2 (Buy).

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Booz Allen Hamilton stock has climbed 360% in the last 10 years to below away its Business Services sector’s 45% and the S&P 500’s 205%. This run includes BAH’s 28% drop since it reached new highs in late October.

Wall Street reacted negatively BAH’s announcement on November 13 that it “made a strategic investment in Starfish Space, an emerging leader in satellite servicing, inclusive of satellite life extension and end-of-life disposal.” The selling also came after BAH reached overheated levels following its post-earnings release surge.

BAH stock found support at its 52-week lows and trades 16% below its average Zacks price target. Booz Allen Hamilton’s fall, mixed with its strong earnings outlook has it trading right near its 10-year median at 19.9X forward 12-month earnings. BAH also offers 17% value compared to its Zacks sector despite its outperformance.

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

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