Best Value Stocks to Buy in July and Hold

The Nasdaq jumped again on the last day of June, marking its second straight upbeat session after its 2% jump on Monday ended a five-session losing streak. The bulls fought to take the tech-heavy index back above its 50-day moving average heading into the third quarter and the long July 4th weekend.

The strong start to the week came as oil prices remained near their pre-Iran war levels. This signals that Wall Street remains highly optimistic that the Strait of Hormuz will return to something close to normal rather quickly as the ceasefire hopefully transitions into a prolonged peace agreement.

That said, investors might not want to start July and the second half of 2026 by piling into potentially overheated AI stocks. Instead, they should 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 July.

Screen Basics: Finding the Best Value Stocks to Buy

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 Stocks to Buy for Value and Upside in July: Home Healthcare Stock AVAH

Aveanna Healthcare Holdings Inc. AVAHis aleader in home care operating across home health & hospice care, medical solutions, and private duty nursing services. The home care leader serves roughly 80,000 patients across nearly 40 states, reaching "medically fragile children, adults, and the geriatric population."

Story Continues

Aveanna provides investors impressive upside in a crucial area of the healthcare industry, especially as the U.S. population grows older.Zacks Investment Research

Image Source: Zacks Investment Research

AVAH crushed our Q1 earnings per share (EPS) estimate by 42% and provided upbeat guidance, marking its fourth-straight massive beat-and-raise quarter.

The home health company in early June completed its acquisition of Family First Holding. The move adds a "scaled, multi-state provider of pediatric home care that primarily provides skilled Private Duty Nursing services with 27 locations in seven states including Florida, Illinois, Iowa, North Carolina, Pennsylvania, South Dakota, and Texas."

The company is projected to grow its revenue by 9% in 2026 and another 5% next year. Plus, its earnings outlook continues to improve since its Q1 release and its recent acquisition. Its FY26 estimate has jumped 16% in the last two months, with its FY27 figure up 14%.Zacks Investment Research

Image Source: Zacks Investment Research

Aveanna's most accurate estimates for 2026 and 2027 are 8% and 7% above their respective consensus.

AVAH's recent upward earnings revisions land it a Zacks Rank #2 (Buy) and extend its run of positive updates. The home health firm is projected to grow its adjusted EPS by 28% this year and another 12% next year.Zacks Investment Research

Image Source: Zacks Investment Research

Aveanna stock has soared 250% in the past two years, yet it is still down around 25% from its 2021 IPO levels. AVAH trades at a 30% discount to its Medical-Outpatient and Home Healthcare industry that ranks in the top 27% of over 250 Zacks industries at 12.6X forward earnings. This is impressive considering that the stock has skyrocketed 450% in the past three years vs. its industry's 40% climb.

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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