Best Value Stocks to Buy Now in April
The stock market soared as JPMorgan and the big banks unofficially kicked off first-quarter earnings season on Tuesday.
The surge helped the Nasdaq charge back up to the top of a key range that could see it test its peaks sooner rather than later. The index has also erased all of its Iran sell-off.
The bulls are betting that the Iran conflict turns out to be another blip on the radar alongside all the other turmoil over the past six years, from Covid to Ukraine.
Image Source: Zacks Investment Research
The rapid comeback has the market racing back to somewhat overheated RSI levels again. This backdrop could see Wall Street take home some quick winners in the early weeks of Q1 earnings season.
Still, the bulls appear to be in control once again. That said, some investors might not want to chase soaring tech stocks. Instead, investors looking to dip their toes back into the market right now could consider buying some best-in-class value stocks.
Today, we explore how investors can screen for some of the standout value stocks to consider buying that sport either a Zacks Rank #1 (Strong Buy) or #2 (Buy).
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…
Buy Soaring Value Stock ATLC for Growth and Breakout Potential
Atlanticus Holdings ATLC is a financial technology company that helps banks, retailers, and healthcare providers offer credit cards and other banking products. Atlanticus focuses on customers who “don’t meet “prime” standards or expensive, high-interest products don’t meet their needs.”
The firm aims to provide financing for “that unexpected bill, family expense, or home repair” and beyond.
Image Source: Zacks Investment Research
ATLC shares have soared 160% in the past two years to crush the Finance sector’s 37%.
Atlanticus’ recent run is part of a ~2,100% charge in the last decade that helped it once again blow away its sector’s (+133%) and break out above its previous peak (the end of 2000).
Despite its recent charge, ATLC’s average Zacks price target marks 38% upside from its current levels.
Image Source: Zacks Investment Research
The financial technology company’s upward earnings revisions land it a Zacks Rank #2 (Buy), with its FY27 estimate up 15% since its March 12 report.
Atlanticus is projected to grow its revenue by 72% in FY26 and another 7% next year to help boost its adjusted earnings by 36% in FY26 and FY27.
Image Source: Zacks Investment Research
On top of all that, Atlanticus trades at a 55% discount to its Finance sector at 7.2X forward 12-month earnings and roughly in-line with its own three-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
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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