6 Best Value Stocks To Buy In 2025 – The Wealthiest Investor

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Many investors are optimistic heading into 2025, and for good reason. In the U.S., interest rates are expected to fall, GDP growth has been stable and the incoming president is decidedly pro-business.

Optimism can favor growth stocks—that is, until the sentiment changes. And when that change happens, you will be thrilled to have some protective value stock exposure. Value stocks, in theory, have lower downside risk because they are already priced at or below their intrinsic value. Expensive growth stocks, on the other hand, have ample room for price declines.

I scouted six value stocks that could be candidates for your portfolio in 2025. Read on to meet these stocks and learn the screening criteria we used to find them.

Methodology Used For These Value Stock Picks

To identify the best value stocks with low price points, reasonable debt loads, good liquidity and recent earnings and cash flow growth, I set these parameters:

Forward PE ratio below 10. Forward PE ratio divides the current share price by the expected future earnings per share (EPS).
Enterprise Value (EV) to Ebitda below 10. EV is market capitalization plus total debt less cash. Ebitda is earnings before interest, taxes, depreciation and amortization. EV to Ebitda is a valuation metric that considers debt and excludes non-cash expenses.
Debt-to-equity (DE) ratio 1 or less. The DE ratio measures financial leverage.
Current ratio above 1.5. The current ratio is calculated as current assets divided by current liabilities. This is a measure of liquidity.
Three-year EPS growth above 10%. Earnings growth is an important consideration for value stocks. Without EPS growth, the stock will not appreciate.
Three-year free cash flow growth above 10%. Growing cash flow funds dividend payments, share buybacks and business expansion efforts.

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6 Top Value Stocks To Buy In 2025

The table below introduces six value stocks that met the criteria outlined above. For more investing ideas, see picks for small cap value stocks and the best value stocks for 2024.

Table data source: Stockanalysis.com.

Let’s explore each of these companies in more detail below. Metrics are from Stockanalysis.com.

1. Halliburton (HAL)

Stock price: $29.44
Forward PE ratio: 9.9
EV/Ebitda: 6.3
Debt-to-equity: 0.84
Current ratio: 2.2
Three-year EPS growth: 85.7%
Three-year FCF growth: 27.3%

Halliburton Business Overview

Halliburton provides support services to oil and gas companies around the world. The company’s service set addresses all phases of reservoir management, including exploration, production and wind-down.

Why HAL Is A Top Choice

HAL has had a tough year. The stock price peaked in April and then fell more than 20%. Contributing to the decline was a cybersecurity attack that made headlines in late August. The attack has reportedly cost the company at least $35 million.

Despite the data breach and stock price volatility, analysts remain optimistic about the oil and gas service provider. The average price target from 18 analysts is about 38% higher than HAL’s current stock price. Factors behind the optimism include:

Halliburton’s expansion into renewable energy.
The company’s willingness to invest in technology and acquisitions to improve efficiency and expand its market position.

2. Joint Stock Company Kaspi.kz (KSPI)

Stock price: $110.31
Forward PE ratio: 8.4
EV/Ebitda: 5.4
Debt-to-equity: 0.12
Current ratio: 5.7
Three-year EPS growth: 38.7%
Three-year FCF growth: 49.5%

Joint Stock Company Business Overview

KSPI manages an application that integrates payments, e-commerce, banking and lending. The Kazakhstan-based company began trading on the Nasdaq in January 2024.

Why KSPI Is A Top Choice

Over the past five years, KSPI has shown solid topline and bottom-line growth. In 2024, the company rapidly expanded its user base and acquired a large stake in the dominant Turkish e-commerce company Hepsiburada. The acquisition aligns with KSPI’s long-term goal of expanding its addressable market to 100 million users.

KSPI has an impressive history of leveraging its engaged customer base to launch new services. Kaspi’s grocery delivery service, for example, launched in 2022 and now has an active customer base of 725,000. The company is also seeing momentum in other new offerings, including travel and tours booking, personalized gift cards and deposit services for merchants.

3. Coterra Energy (CTRA)

Stock price: $25.03
Forward PE ratio: 9.8
EV/Ebitda: 5.8
Debt-to-equity: 0.18
Current ratio: 1.6
Three-year EPS growth: 23.4%
Three-year FCF growth: 34.0%

Coterra Energy Business Overview

Coterra explores and produces oil, natural gas and natural gas liquids in the U.S. The company owns assets in Pennsylvania, Texas, New Mexico and Oklahoma.

Why CTRA Is A Top Choice

Coterra recently announced its intention to acquire assets from Franklin Mountain Energy and Avant Natural Resources. Both acquisitions expand the company’s position in the Permian Basin of west Texas and southeast New Mexico. The two deals should enhance Coterra’s profitability in the region and diversify its revenue. The company also recently announced three new long-term international LNG agreements. These will further diversify revenue starting in 2027.

The deals should add to the momentum Coterra is already achieving organically. In its last quarterly release, the company raised its production guidance for 2024 oil, natural gas and BOE. The midpoint of the 2024 oil guidance now equals 12% growth and is 5% higher than the outlook provided last February.

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4. Ultrapar Participacoes S.A. (UGP)

Stock price: $3.05
Forward PE ratio: 9.0
EV/Ebitda: 5.4
Debt-to-equity: 1
Current ratio: 1.6
Three-year EPS growth: 42.2%
Three-year FCF growth: 11.5%

Ultrapar Participacoes S.A. Business Overview

UGP is a Brazilian holding company that provides distribution, transportation, technology and storage services in the energy sector. UGP’s subsidiaries are Hidrovias do Brasil, Ultragaz, Ultracargo and Ipiranga.

Why UGP Is A Top Choice

UGP currently trades in penny-stock territory at roughly $3 per share. At that price, the stock is easy to buy and sell—which, unfortunately, encourages volatility. Investors have not been patient with the Brazilian company this year, either. The stock eclipsed $6 per share in February but has trended down since due to underperformance in the first two quarters.

The falling stock price raises UGP’s dividend yield above 4% and lowers its valuation metrics. This could be an attractive buying opportunity if UGP can leverage its size across different markets. According to Insider Monkey, the company has 19% market share in vehicle fuel distribution in Brazil and operates one of the country’s largest LPG distribution networks.

5. Ezcorp (EZPW)

Stock price: $12.19
Forward PE ratio: 9.8
EV/Ebitda: 7.2
Debt-to-equity: 0.71
Current ratio: 2.7
Three-year EPS growth: 94.4%
Three-year FCF growth: 50.5%

Ezcorp Business Overview

Ezcorp operates pawn shops in the U.S. and Latin America. The company provides collateralized loans and buys merchandise from consumers for resale.

Why EZPW Is A Top Choice

Ezcorp regularly outperforms analysts’ expectations for earnings and revenue. Through acquisitions and organic growth, the company has increased its store count by roughly 20% since fiscal year 2020. Today, Ezcorp operates 1,279 pawn stores, including 20 Latin America locations added in fiscal 2024. The company also recently announced the acquisition of a 53-store chain in Mexico.

The pawn shop operator recently reported record annual revenue and pawn loans outstanding (PLO) for fiscal year 2024, which ended on September 30. Revenues increased 11% to $1.2 billion, and PLO grew 12% to $274.1 million. Diluted earnings per share also rose 20%.

6. Ultralife (ULBI)

Stock price: $7.81
Forward PE ratio: 10.1
EV/Ebitda: 8.2
Debt-to-equity: 0.09
Current ratio: 3.3
Three-year EPS growth: 42.1%
Three-year FCF growth: 38.4%

Ultralife Business Overview

Ultralife designs, makes, installs and sells batteries, communications systems and related accessories. The company serves customers in multiple industries, including government, defense, medical, security, industrial and energy.

Why ULBI Is A Top Choice

Like other low-priced stocks on this list, ULBI has been volatile in 2024. The stock hit a high in May before dropping more than 40% to its current price of about $7.70. There was a small run in early November, but it was reversed by a disappointing earnings report. ULBI’s third-quarter revenue and earnings fell due to order timing and supply chain issues.

The good news is that ULBI is a leader in the design and manufacture of in-demand lithium-ion batteries. McKinsey predicts demand for lithium-ion batteries will rise by 27% annually through 2030—Ultralife will benefit from that growth.

The company also maintains good expense and capital allocation discipline under CEO Michael Manna. Over the past year, Ultralife repaid over half its long-term debt and improved gross margin by over 100 basis points relative to year-end 2023 results.

Bottom Line

The best stocks aren’t always the most popular ones. An overlooked value stock with solid fundamentals and a healthy balance sheet could deliver the exposure you need as we march forward optimistically into the new year.