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How to Buy the Best Value Stocks in February and Beyond
Cirrus LogicCirrus Logic(US:CRUS) ZACKS·2025-02-11 19:11

Market Overview - The stock market has shown resilience despite a volatile start to 2025, with key indicators such as the January CPI and Nvidia's earnings expected to influence future movements [1] - Bullish fundamentals for the stock market are anticipated to remain intact in the near future [1] Investment Strategy - Investors are advised to be cautious about purchasing stocks that may be overpriced as the market approaches all-time highs [2] - There are numerous value stocks available for investment, particularly those with strong earnings outlooks [2] Screening Methodology - The screening process utilizes the Research Wizard to identify top value stocks, focusing on Zacks Rank 1 (Strong Buys) or 2 (Buys) [3] - The screen prioritizes stocks with price-to-earnings (P/E) ratios and price-to-sales (P/S) ratios below the industry median [4][7] - It also considers quarterly earnings rates above the industry median and incorporates upgrades and estimate revisions to select the best stocks [4] Featured Stock: Cirrus Logic, Inc. (CRUS) - Cirrus Logic is highlighted as a strong value stock, specializing in low-power, high-precision mixed-signal processing solutions [5] - The company aims to maintain its leadership in smartphone audio and increase its high-performance mixed-signal content in smartphones [6] - Cirrus Logic has exceeded earnings estimates by an average of 50% over the past four quarters, with a notable 24% beat in Q3 FY25 [8] - The stock has appreciated nearly 1,400% over the last 15 years, significantly outperforming the Tech sector's 640% growth [8] - Despite recent underperformance, the stock is currently trading at a 50% discount to its 10-year highs and a 30% discount compared to the Tech sector [10]