Finding the Best Value Stocks to Buy in July

Market Overview - The Nasdaq and S&P 500 reached new highs at the end of June 2025, with the Nasdaq up 33% since April 8 and the S&P 500 up 25%, largely driven by significant gains from Nvidia and other tech stocks [1] - There may be selling pressure and volatility as the market approaches the second quarter earnings season in mid-July [1] Economic Context - Trade deals, cooling inflation, and strong earnings growth expectations create a bullish environment for Wall Street as summer begins [2] - Investors are encouraged to seek stocks that combine compelling value with improving earnings outlooks for potential buying opportunities in July and beyond [2] Value Stock Screening - The value stock screen utilizes Zacks Rank 1 (Strong Buys) or 2 (Buys) and focuses on stocks with price-to-earnings (P/E) and price-to-sales (P/S) ratios below the industry median [4][8] - The screening process also considers quarterly earnings rates above the industry median and incorporates upgrades and estimate revisions to identify the top seven stocks [5][8] Featured Stock: Hudbay Minerals - Hudbay Minerals Inc. (HBM) is a Canadian mining company focused on producing copper, gold, silver, zinc, and molybdenum, with key assets in Canada, Peru, and the U.S. [6][10] - The company has a growth pipeline that includes projects like Copper World in Arizona, with copper accounting for approximately 57% of its projected 2024 revenue [10] - Hudbay reported a significant beat-and-raise in its first quarter, earning a Zacks Rank 2 (Buy), with projected adjusted earnings growth of 42% in 2025 and a 9% increase in revenue [11] Earnings Estimates - Current earnings estimates for Hudbay are as follows: - Current Quarter (6/2025): $0.17 - Next Quarter (9/2025): $0.15 - Current Year (12/2025): $0.68 - Next Year (12/2026): $0.67 [12] - The most accurate estimates show a potential increase to $0.84 for the current year and $1.16 for the next year, indicating strong growth potential [14] Stock Performance - Hudbay's stock has increased by 260% over the past five years, significantly outperforming the Zacks Basic Materials sector, which rose by 40% [14] - The stock experienced a 33% increase in 2025, reaching new 10-year highs on July 1, while trading in line with its 10-year median at a forward P/E of 15.7X [14]