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Finding Great Value Stocks to Buy Amid the Stock Market Selloff
ZACKS· 2025-03-18 20:35
Market Overview - The S&P 500 and Nasdaq are in correction territory, down over 10% from recent peaks, as investors react to tariff uncertainties and their potential impact on the global economy [1] - Wall Street is awaiting the Federal Reserve's interest-rate decision and comments from Jay Powell [1] Investment Opportunities - There are numerous value stocks available for purchase, particularly given the strong earnings outlook for the S&P 500 [2] - ACI Worldwide is highlighted as a must-buy tech stock due to its strong value and growth potential [7][8] Stock Screening Methodology - The screening process focuses on stocks with Zacks Rank 1 (Strong Buy) or 2 (Buy), P/E ratios under the industry median, and P/S ratios under the industry median [5][9] - The screen also considers quarterly earnings rates above the industry median and utilizes a blend of upgrades and estimate revisions to identify the top seven stocks [6] ACI Worldwide Performance - ACI Worldwide has a significant client base, including over 6,000 organizations and 1,000 large financial institutions, processing billions of transactions daily [10] - The company achieved 10% sales growth in 2024 and 42% adjusted earnings growth, with projections of 7% revenue growth and 9% higher sales in 2025 [11] - ACI's consensus earnings estimate for FY26 increased by 10% since February 27, contributing to its Zacks Rank 1 [12] Stock Valuation - ACI Worldwide's stock has increased by 450% over the past 25 years, outperforming the Zacks Tech Sector's 415% growth [12] - Despite recent performance, ACIW trades 11% below its November records and 20% below its average Zacks price target, indicating potential for further appreciation [15]
Buy AMZN, META, and Other Tech Stocks Now or Wait for a Bigger Dip?
ZACKS· 2025-03-07 13:00
Market Overview - The stock market is experiencing a selloff, influenced by tariff battles involving the U.S., Canada, Mexico, and China, with uncertainty surrounding the actions of the Trump administration [1][2] - The Nasdaq and S&P 500 have fallen below their 200-day moving averages for the first time since Q4 2023, indicating a potential shift in market sentiment [5] Performance Metrics - Nvidia has seen significant gains, up 380% over the last two years and 1,700% over the last five years, despite a recent drop [3] - The Nasdaq and S&P 500 have increased over 100% in the past five years, with the S&P 500 trading at 20.6X forward earnings compared to its 10-year median of 18.1X [7][8] Investor Sentiment - The CNN Fear & Greed Index has dropped from Neutral to Extreme Fear, indicating a shift in investor sentiment [8] - Benchmark earnings are projected to grow 13.3% in 2025 and 13.7% in 2026, suggesting a positive outlook despite current market conditions [9] Investment Opportunities - Invesco's QQQ ETF, which tracks the Nasdaq-100 Index, has fallen below its 200-day moving average and is down approximately 10% from its February highs, presenting a potential buying opportunity for long-term investors [10][11] - Meta's stock has decreased by 15% since February 14, trading at a 60% discount to its 10-year highs, with a strong user base and growth potential in AI [12][14] - Amazon's shares have dropped 17% since early February, trading at over 90% below its highs, with projected EPS growth of 14% in 2025 and 18% in 2026, indicating potential value [19][20][23]