2 Value Stocks To Buy Before November

Growth stocks had the upper hand last week, but the longer-term picture isn’t quite so one-sided. Large-cap value remains comfortably ahead of large-cap growth since the start of the year.

In conditions like these, many investors have a knee-jerk reaction. 

Instead of staying put and waiting for a thesis to play out, they rush in, hoping to take advantage of short-term trends. The trouble with that approach is that it leaves little to no time for due diligence and research. At that point, it wouldn’t be unfair to call what’s going on closer to gambling than investing.

Paying a reasonable price still matters, particularly in a market with already stretched valuations. The difficulty lies in separating genuinely undervalued companies from stocks that are simply cheap for a reason.

Fortunately, there’s a way to do just that … And it’s neither complicated nor time-consuming. All you have to do is turn to…

Value Stock Strategy

Our in-house quant system takes a look at 4,600 stocks on a daily basis, and grades them on the basis of 115 metrics, split across 7 categories. That data is distilled into a simple, approachable metric — a stock’s Zen Rating.

Our highest grade, a Zen Rating of A, equivalent to a Strong Buy recommendation, is only given to the stocks that rank in the top 5% on overall fundamental strength. A bit of quick math tells us that 5% of 4,600 is 230 — and while that is a good start, that is still plenty of tickers to consider on any given day. 

That’s not the end of it, however — you can speed things along by taking a look at one of our exclusive Zen Strategies.

Each strategy is a portfolio consisting of just 7 stocks, hand-picked to deliver market-beating returns. There are 11 portfolios in total — today, we’ll be taking a look at a Strategy that has delivered a 21.38% return since the start of the year, compared to the 13.9% gain that the S&P has made in the same time frame.

This week, the spotlight is on our Value Stock Strategy.

Without further ado, let’s take a closer look at 2 interesting tickers from the portfolio… 

Leidos Holdings (LDOS)

Leidos provides technology, cybersecurity, engineering, and mission-support services, with a particular focus on U.S. defense and intelligence customers. LDOS currently ranks in the top 12% of all the stocks we track, giving it a Zen Rating of B — and it’s also the 4th highest-rated stock in the Information Technology Service industry.

LDOS earns strong marks across several categories. Growth comes in at the top 37%, followed by Artificial Intelligence at the top 18% and Financials at the top 8%. A beta of just 0.47 helps put Safety in the top 5%, but Value is the real standout. With a P/E ratio of just 11.16x and a price-to-sales ratio of 0.78x, it’s not hard to see why Leidos ranks in the top 1% of everything we track for Value.

Sentiment is much closer to the middle of the pack, while Momentum is the clear weak point. That recent price weakness, however, is also part of what has pushed the stock’s valuation to such compelling levels.

The underlying business certainly hasn’t been standing still. Leidos has beaten EPS estimates for 13 quarters in a row. In September, the Navy awarded the company $926 million for the second option year of a contract supporting networks used by more than 650,000 Navy and Marine Corps personnel. Just days later, the company received another Army award worth up to $127 million to extend its ARTEMIS airborne intelligence mission.

KBR (KBR)

KBR provides engineering, technology, and mission-support services across the energy, infrastructure, defense, and space markets. KBR currently ranks in the top 9% of everything we track, giving it a Zen Rating of B — and it’s the 4th highest-rated stock in the B-rated Engineering & Construction industry.

KBR also has a nicely balanced fundamental profile. Sentiment ranks in the top 35%, and the average analyst price target currently implies an upside of 24%. Next up is Growth, where KBR is in the top 29%, followed by Financials, where it’s in the top 23%, and then Artificial Intelligence in the top 19%. A beta of just 0.72 helps put Safety in the top 11%.

Once again, however, Value steals the show. KBR trades at just 10.61x earnings and 0.59x sales, helping it rank in the top 1% of all the stocks we track for Value.

Momentum is the obvious weak spot, but there are several fresh developments that could give investors something new to consider. On September 30, KBR filed the registration statement for the planned spin-off of its Mission Technology Solutions business, which will become Trinzic. The separation is expected in January 2027 and will leave shareholders with stakes in two more focused businesses.

KBR has also continued to win new business. Its ammonia technology was selected in late September for a major fertilizer complex in Saudi Arabia, while an October 6 award will see the company provide engineering and project-execution services for upgrades at Aramco’s Marjan offshore field.

Interested In More Great Stock Picks? 

The 2 stocks highlighted above are just a fraction of what you get from our proven Value Stock strategy.

That’s because each day our system recalibrates — and Zen Strategies members get access to the top 7 value stocks based on 115 different parameters that point to outperformance. 

See all Top 7 Value stocks here >

However, maybe none of the stocks you’ve seen here have caught your eye. Perhaps you would like to see all 11 of our market beating strategies including Growth, Momentum, Value, and our coveted AI Factor model. 

Each featuring the top 7 stocks.

Each featuring tremendous performance.

We spell it all out in this timely presentation below that lives up to its name:

77 Best Stocks Now! > 

What to Do Next?

• 77 Best Stocks NOW! >
• Options Trading with the Zen Ratings >
• 2 New Stocks to Buy from Steve Reitmeister >

Want to get in touch? Email us at news@wallstreetzen.com.