Finding the Best Value Stocks to Buy Now

Investors should block out all the noise surrounding the stock market and Wall Street and focus on the strength of fourth-quarter earnings season and, more importantly, the robust 2026 guidance.

Check out the Zacks Earnings Calendar to stay ahead of market-moving news.

The long-term bull case remains firmly in place for 2026 and beyond, supported by earnings expansion across the economy and the likelihood that the Fed cuts rates again in the back half of the year.

Wall Street is also currently experiencing a bit of a rotation out of artificial intelligence and high-flying growth stocks into other pockets of the market.

One area of Wall Street that retail investors should consider putting money into is value stocks.

Today, we explore how investors can screen for the best Zacks Rank #1 (Strong Buy) and #2 (Buy) Value stocks to buy now amid the market rotation out of tech and throughout 2026. 

Screen Basics: 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…

Buy Soaring Tech Stock ARW for Value, Growth, and Breakout Potential  

Arrow Electronics ARW is a global distributor of electronic components and more. ARW boasts that it sources and engineers technology “solutions for thousands of leading technology manufacturers and service providers.”

ARW’s portfolio includes semiconductors, interconnects, passive devices, computers, thermal management, sensors, and much, much more. It also offers enterprise computing solutions, including cloud, data center offerings, security, and analytics products and services to IT providers, resellers, and commercial customers.

Image Source: Zacks Investment Research

ARW posted blowout Q4 earnings on February 5 and offered strong guidance. Its FY26 earnings estimate has surged roughly 10% since its release, with its FY27 estimate 14% higher, helping  Arrow Electronics earn a Zacks Rank #1 (Strong Buy). Its blockbuster report was bolstered by “continued momentum in cloud, AI, and datacenter activity.”

The technology company is projected to expand its sales by 7% in 2026 and 3% in 2027 to reach $34 billion as it races to return to its economic spending boom record of $37 billion in 2022. Meanwhile, it is expected to grow its adjusted earnings by 19% in 2026 and 10% next year.

Arrow Electronics is projected to capitalize on stabilizing semiconductor and IT markets, expanding enterprise computing solutions demand, cyclical upside in electronics components, and beyond.

Image Source: Zacks Investment Research

Arrow Electronics stock has soared 40% YTD, boosted by its strong Q4 report in early February. Its surge helped it break out to new all-time highs and out of the range it had been stuck in for the last five years. ARW has climbed 460% in the past 25 years, with its recent charge pushing it closer to matching the S&P 500’s 490% run.

ARW’s breakout helped it complete a long-term golden cross, with its 50-week crossing above its 200-week. Despite its long-term run and recent breakout, it trades near its historic median, 70% below its highs, and at a 53% discount to the Tech sector at 11.8X 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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