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Finding the Best Value Stocks to Buy in July

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Key Takeaways

  • Stocks that offer the winning combination of great value and improving earnings outlooks.
  • Buy Canadian mining stock Hudbay Minerals for value even after it broke out to new highs.

The Nasdaq and the S&P 500 surged to new highs to end June and the wild first half of 2025. The tech-heavy index has soared 33% since April 8, with the benchmark up 25%, driven by massive gains from Nvidia and tech stocks.

The market could face selling pressure and volatility heading into the heart of second quarter earnings season in the middle of July.

Thankfully, trade deals, cooling inflation, and strong earnings growth expectations provide a bullish backdrop as Wall Street kicks off the summer.

Some investors might not want to ‘chase’ soaring tech stocks right now, but that doesn’t mean they are staying on the sidelines.

Today, we walk investors through how to screen for stocks that offer the winning combination of compelling value and improving earnings outlooks, ideal for buying in July and beyond. 

Value Stock 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…

Buy Value Stock Hudbay Minerals Before It Soars?

Hudbay Minerals Inc. (HBM - Free Report)  is a Canadian mining company that primarily produces copper, gold, silver, zinc, and molybdenum from its operations in Canada, Peru, and the U.S. Its key assets include the Constancia mine in Peru, Snow Lake operations in Manitoba, and the Copper Mountain mine in British Columbia, focusing on low-cost, long-life mining projects.

Zacks Investment Research
Image Source: Zacks Investment Research

Hudbay's growth pipeline includes projects such as Copper World in Arizona and exploration activities to extend the lifetime of mines and discover new deposits. Copper accounted for roughly 57% of Hudbay’s 2024 revenue. The metal offers strong upside as the U.S. and the world race to build out energy infrastructure and expand artificial intelligence. Copper is used in electrical wiring, renewable energy systems, construction, and much more.

Hudbay posted a massive beat-and-raise first quarter that helps it earn its Zacks Rank #2 (Buy). It is projected to grow its adjusted earnings by 42% in 2025 on 9% higher revenue, and its Most Accurate FY25 EPS estimate came in 23% above consensus and 73% above for 2026.

Zacks Investment Research
Image Source: Zacks Investment Research

Hudbay stock has jumped 260% in the past five years, blowing away the Zacks Basic Materials sector’s 40%. This run includes a 33% jump in 2025 that helped the copper miner break out to new 10-year highs on July 1. Yet HBM trades roughly in line with its 10-year median and its sector at 15.7X 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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