The S&P 500 and the Nasdaq are both in correction territory, down over 10% from their recent peaks, even though the bulls tried to hold their ground late last Friday.
The tariff uncertainty and their potential impact on the global economy are forcing investors to sell stocks to lock in the massive gains they accumulated over the last few years. Wall Street is now waiting to see what Jay Powell and the Fed do and say on Wednesday when they make their FOMC interest-rate decision.
No one knows what Trump might do next, but it’s doubtful he intends to tank the stock market and the U.S. economy. That said, there could be more selling to help recalibrate valuations that grew bloated.
Thankfully, there are a ton of great value stocks to buy right now if you know where to look. Buying strong value stocks right now makes even more sense considering that the overall S&P 500 earnings picture is strong.
Today we show investors how to screen for stocks that offer the potentially winning combination of remarkable value and improving earnings outlooks to buy in March 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…
ACI Worldwide (ACIW) is a software solutions company that develops and provides real-time electronic payment and banking solutions. ACI Worldwide’s portfolio empowers banks, financial institutions, merchants, intermediaries, and beyond to manage digital payments, process transactions, prevent fraud, and more.
ACI Worldwide boasts that more than 6,000 organizations, “including 1,000 of the largest financial institutions and intermediaries” rely on them to “execute billions of transactions each day in payments and securities.”
Image Source: Zacks Investment Research
ACI has expanded impressively over the last two decades as digital transactions exploded. ACI posted 10% sales growth in 2024 (best year since 2019) and 42% adjusted earnings expansion.
On top of that, ACI more than doubled its cash flow to over $350 million. ACI is projected to follow up this impressive year with 7% revenue growth in 2025 and 9% higher sales next year. Meanwhile, its adjusted EPS are expected to jump 3% and 20%, respectively.
Image Source: Zacks Investment Research
ACI’s FY26 consensus earnings estimate jumped 10% since its February 27 release to help ACIW land its Zacks Rank #1 (Strong Buy).
ACIW stock has climbed 450% in the last 25 years to outpace the Zacks Tech Sector’s 415%. ACIW has rounded big time off its 2023 lows, and it is up 65% in the past 12 months to blow away Tech’s 8%.
Image Source: Zacks Investment Research
ACIW trades 11% below its November records and 20% below its average Zacks price target. Despite its recent and long-term outperformance, the stock trades at an 8% discount to Tech and 65% below ACIW’s highs.
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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This article originally published on Zacks Investment Research (zacks.com).
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