Key Takeaways StoneCo, Garmin, Assurant, VICI Properties and Duke Energy show robust 2025 sales growth potential.The screening strategy favors firms with high cash flow, sales growth and efficient cost control.Strong operating margins and ROE highlight companies turning steady sales into durable profits.Markets opened in 2025 on a strong note but soon encountered heightened volatility. Tariffs and geopolitical uncertainty persist, while the Federal Reserve’s rate cut reflects a cooling labor market and risi ...

Investors interested in Internet - Software stocks are likely familiar with ZoomInfo (GTM) and F5 Networks (FFIV) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimat ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find compa ...

Core Insights - Markets began 2025 positively but have experienced significant volatility due to tariff pressures and geopolitical uncertainties, with rising expectations for a September FOMC rate cut amid a softening labor market and inflationary trade policy effects [1] Stock Selection Strategy - The current investment environment necessitates a conventional stock selection method, focusing on companies with steady sales growth. Notable companies include Microsoft Corporation (MSFT), Textron Inc. (TXT), Bank OZK (OZK), and TransUnion (TRU) [2][9] Revenue and Financial Health - Investors prioritize revenue over earnings when evaluating companies, as increasing sales indicate a growing customer base and long-term potential. Conversely, stagnant or declining revenues may suggest operational challenges [3] - Revenue growth should be analyzed alongside a company's cash position, as strong cash reserves and healthy cash flow provide flexibility for growth and operational stability [4] Screening Parameters for Stock Selection - Stocks are shortlisted based on criteria including 5-Year Historical Sales Growth (%) greater than the industry average and Cash Flow exceeding $500 million [5] - Additional metrics include a Price/Sales (P/S) Ratio lower than the industry average, positive % Change in F1 Sales Estimate Revisions compared to the industry, Operating Margin greater than 5%, Return on Equity (ROE) above 5%, and a Zacks Rank of 1 or 2 [6][7][8] Company-Specific Insights - Microsoft (MSFT) is projected to have a 13.8% sales growth in 2025 and currently holds a Zacks Rank of 2 [9][10] - Textron (TXT) anticipates a 7.7% sales growth in 2025, also with a Zacks Rank of 2 [11] - Bank OZK (OZK) expects a 4.2% increase in sales for 2025, maintaining a Zacks Rank of 2 [11] - TransUnion (TRU) forecasts a 6.9% sales growth in 2025 and holds a Zacks Rank of 2 [12]

Core Viewpoint - The article emphasizes the importance of value investing and highlights HudBay Minerals (HBM) as a strong value stock opportunity based on its Zacks Rank and valuation metrics [2][5]. Valuation Metrics - HudBay Minerals (HBM) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating it is among the best value stocks currently available [2]. - HBM's PEG ratio is 0.28, which is lower than the industry average of 0.36, suggesting it may be undervalued relative to its expected earnings growth [3]. - The P/S ratio for HBM is 1.89, significantly lower than the industry average of 3.07, reinforcing the notion that HBM is undervalued [4]. Earnings Outlook - The strong earnings outlook for HBM, combined with its favorable valuation metrics, positions it as an impressive value stock at the moment [5].

Core Insights - The article emphasizes the importance of earnings estimates and revisions in identifying strong stocks, while also acknowledging that investors have diverse strategies [1] - Value investing is highlighted as a popular method for identifying undervalued stocks, which can lead to profit opportunities [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly focusing on value stocks with high grades [3] Company Analysis - DHI Group (DHX) is identified as a stock to watch, currently holding a Zacks Rank of 2 (Buy) and an A for Value [4] - DHX has a Forward P/E ratio of 13.41, significantly lower than the industry average of 25.24, indicating potential undervaluation [4] - Over the past year, DHX's Forward P/E has fluctuated between a high of 28.42 and a low of 8.99, with a median of 11.80 [4] Valuation Metrics - The P/S ratio is another key metric used by value investors, with DHX's P/S ratio at 0.63 compared to the industry average of 1.15 [5] - These valuation figures suggest that DHX is likely undervalued at present, supported by a strong earnings outlook [6]