The stock market has climbed off its recent lows as Wall Street looks ahead with cautious optimism to the possibility that the Trump administration will start making trade deals. Beyond tariffs, JPMorgan and other major banks recently kicked off the first-quarter earnings season.
Wall Street remains on edge, anxiously awaiting the next significant tariff update, as well as earnings reports from big tech companies. More importantly, investors are seeking guidance and insights into the potential impact of tariffs on corporate performance.
The bulls held their ground near the Nasdaq’s 2021 peaks and the 200-week moving average last week. This recent rebound underscores why investors need to stay invested and exposed to a potential market rally, as time in the market often outperforms attempts at market timing.
Still, investors may not be ready to dive back into growth-focused tech stocks or hard-hit names still trading at lofty valuations.
Fortunately, there are numerous attractive value stocks to buy right now for those who know where to look.
Today, we’ll guide investors on how to screen for stocks that offer the winning combination of compelling value and improving earnings outlooks, ideal for buying in April amid ongoing market volatility and beyond.
Screen Basics
The screen we are digging into today comes loaded with the Research Wizard and aims to sort through highly-ranked Zacks stocks to find some of the top value names.
This value-focused screen searches only for stocks that boast Zacks Rank #1 (Strong Buys) or #2 (Buys). It also focuses on stocks with price-to-earnings (P/E) ratios under the median for its industry. The screen also looks for stocks with price-to-sales (P/S) ratios under the median for its industry to help lock in relative value compared to its peers, since basing it off the wider market is not always the most useful tool.
The screen then digs into quarterly earnings rates above the median for its industry. This particular Zacks screen also uses a special blend of upgrades and estimates revisions to select the best seven stocks in this list.
The screen basics are listed below…
· Only Zacks Rank #1 (Strong Buy) or #2 (Buy) Stocks
· P/E (using 12-month EPS) - Under the Median for its Industry
· P/S - Under the Median for its Industry
· Percentage Change Act. EPS Q(0)/Q(-1)
· Rating Change and Revisions Factors (to help narrow the list to the 7 best stocks in this list)
This strategy comes loaded with the Research Wizard and it is called bt_sow_value_method1. It can be found in the SoW (Screen of the Week) folder.
The screen is pretty simple, yet powerful. Here is one of the seven stocks that made it through this week's screen…
Atlanticus Holdings Corporation ATLC is a financial technology company that provides credit and related financial services to underserved consumers and businesses. The company offers credit cards and banking products to help consumers rebuild their financial stability, alongside financing solutions for unexpected bills, family expenses, home repairs, and more.
Image Source: Zacks Investment Research
Atlanticus also provides funding and financing options for automobile dealers and supports healthcare providers in managing costs and complexity. The company has delivered impressive growth over the past decade, with revenue rising from $78 million in 2015 to $1.3 billion in 2024. ATLC is projected to reach $1.5 billion in sales by 2026.
On the bottom line, Atlanticus is expected to boost its earnings by 29% in 2025 and 20% in 2026, following 13% growth last year. These upward EPS revisions have earned ATLC a Zacks Rank #2 (Buy), and the company has surpassed estimates by an average of 12% over the past four quarters.
Image Source: Zacks Investment Research
Atlanticus shares have surged 105% over the past 12 months, significantly outperforming the S&P 500’s 8% gain and the finance sector’s 15% increase. This run is part of a 380% climb over the trailing five years—outpacing the finance sector’s 92% growth—driving the stock to new all-time highs following an extended post-financial crisis downturn.
Despite its strong outperformance, ATLC trades at a 50% discount to its sector at 8.1X forward 12-month earnings.
Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.
Click here to sign up for a free trial to the Research Wizard today.
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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: www.zacks.com/performance_disclosure
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This article originally published on Zacks Investment Research (zacks.com).
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