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Best Value Stocks to Buy Now in an Overheated Market
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Key Takeaways
Buying the best value stocks in May as the stock market looks overheated.
Surging gas station and convenience store giant MUSA is a market-crushing value stock to buy now and hold.
Stocks dipped again on Tuesday, following their drop on Monday. The market appears due for a larger pullback at some point after the massive AI and chip-driven rally to new highs has things looking a bit overheated.
Nvidia’s earnings report on Wednesday may serve as a catalyst for either a rebound to new highs or trigger a much-deserved drawdown.
Either way, investors likely don’t want to pile into overheated AI stocks right now. Instead, they might want to consider buying best-in-class value stocks.
Today, we explore how investors can find highly-ranked—Zacks Rank #1 (Strong Buy) or #2 (Buy)—value stocks to buy in May and going forward.
Screen Basics: Finding the Best Value Stocks to Buy Now
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 simple, yet powerful. Here is one of the seven stocks that made it through this week's screen…
Best Soaring Value Stocks to Buy Now and Hold Forever: MUSA
Murphy USA (MUSA - Free Report) is a gas station and convenience store powerhouse, operating roughly 1,700 stores across 27 states. MUSA boasts that it serves around 1.7 million customers daily. The company is benefiting from surging gas prices in 2026 and strong convenience store spending, highlighted by what it called “exceptional nicotine performance” in the first quarter.
Image Source: Zacks Investment Research
The gas station giant posted blowout Q1 results and raised its guidance. MUSA’s fiscal 2026 earnings estimate has ripped 26% higher since its April 29 release, with its 2027 estimate up 8%.
Its improving bottom-line outlook helps it land its Zacks Rank #1 (Strong Buy) right now. The recent positivity helped its 2026 EPS estimate overtake where it was in early 2025 before it suffered a wave of downward revisions that contributed to Murphy USA stock’s disappointing 2025.
Image Source: Zacks Investment Research
MUSA is projected to grow its revenue by 14% in 2026 to help boost its adjusted earnings by 32%. The company also pays a dividend and stands to benefit from the current economic turmoil since buying gas and small convenience store items (especially nicotine) are two categories that are difficult to cut back on.
Image Source: Zacks Investment Research
Murphy USA stock has surged 750% in the past 10 years to more than double the S&P 500 and blow away its sector’s 225%. This includes a 300% charge in the past five years, and a 40% YTD to fresh highs. Despite its outperformance and its run to a record high to start May, MUSA trades near its 10-year median, at a 25% discount to both its 10-year highs and the Zacks Retail sector at 18.3X 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.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
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.
View the Zacks #1 Rank List
Image: Bigstock
Best Value Stocks to Buy Now in an Overheated Market
Key Takeaways
Stocks dipped again on Tuesday, following their drop on Monday. The market appears due for a larger pullback at some point after the massive AI and chip-driven rally to new highs has things looking a bit overheated.
Nvidia’s earnings report on Wednesday may serve as a catalyst for either a rebound to new highs or trigger a much-deserved drawdown.
Either way, investors likely don’t want to pile into overheated AI stocks right now. Instead, they might want to consider buying best-in-class value stocks.
Today, we explore how investors can find highly-ranked—Zacks Rank #1 (Strong Buy) or #2 (Buy)—value stocks to buy in May and going forward.
Screen Basics: Finding the Best Value Stocks to Buy Now
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 simple, yet powerful. Here is one of the seven stocks that made it through this week's screen…
Best Soaring Value Stocks to Buy Now and Hold Forever: MUSA
Murphy USA (MUSA - Free Report) is a gas station and convenience store powerhouse, operating roughly 1,700 stores across 27 states. MUSA boasts that it serves around 1.7 million customers daily. The company is benefiting from surging gas prices in 2026 and strong convenience store spending, highlighted by what it called “exceptional nicotine performance” in the first quarter.
Image Source: Zacks Investment Research
The gas station giant posted blowout Q1 results and raised its guidance. MUSA’s fiscal 2026 earnings estimate has ripped 26% higher since its April 29 release, with its 2027 estimate up 8%.
Its improving bottom-line outlook helps it land its Zacks Rank #1 (Strong Buy) right now. The recent positivity helped its 2026 EPS estimate overtake where it was in early 2025 before it suffered a wave of downward revisions that contributed to Murphy USA stock’s disappointing 2025.
Image Source: Zacks Investment Research
MUSA is projected to grow its revenue by 14% in 2026 to help boost its adjusted earnings by 32%. The company also pays a dividend and stands to benefit from the current economic turmoil since buying gas and small convenience store items (especially nicotine) are two categories that are difficult to cut back on.
Image Source: Zacks Investment Research
Murphy USA stock has surged 750% in the past 10 years to more than double the S&P 500 and blow away its sector’s 225%. This includes a 300% charge in the past five years, and a 40% YTD to fresh highs. Despite its outperformance and its run to a record high to start May, MUSA trades near its 10-year median, at a 25% discount to both its 10-year highs and the Zacks Retail sector at 18.3X 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.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
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