Buying the Best Value Stocks in 2026

Core Viewpoint - The outlook for Wall Street in 2026 remains optimistic, driven by lower interest rates and strong earnings growth, although certain market segments, particularly AI stocks, appear overheated [1]. Investment Strategy - Investors are encouraged to utilize the Zacks Earnings Calendar to identify potential market-moving news and to screen for top-ranked value stocks, specifically those with Zacks Rank 1 (Strong Buy) [2]. Screening Methodology - The screening process focuses on stocks with Zacks Rank 1 or 2, P/E ratios below the industry median, and P/S ratios under the industry median to ensure relative value [4][9]. - The screen also considers quarterly earnings growth above the industry median and incorporates upgrades and estimate revisions to identify the best stocks [5]. Featured Stock: Cirrus Logic (CRUS) - Cirrus Logic is highlighted as a strong buy, specializing in low-power, high-precision mixed-signal processing solutions for various electronic devices [6]. - The company reported 6% sales growth and 22% GAAP earnings growth in fiscal 2025, with projections for continued solid earnings growth in FY26 [7][11]. - Earnings revisions for FY26 and FY27 have increased significantly, with the 2027 estimate up by 9% [7][11]. - Cirrus Logic has outperformed the tech sector over the past 20 years, with a stock price increase of nearly 1,400%, compared to the tech sector's 870% [15]. - The stock is currently trading at a 50% discount to its 15-year highs and a 30% discount to the tech sector average, making it an attractive option for growth and value [16].