Tiding over a long list of apprehensions, 2015 has so far been a great year for some corners of the investment universe. The optimism is validated by an improving job market, rising consumer confidence, stepped-up economic activities, an improving labor market and an accommodative monetary policy stance that indicate hope on the horizon.

With the global economy in trouble, investors have been banking on growth in the U.S. markets to balance the international downfall. However, a Fed rate hike seems inevitable in December. This along with lingering terrorist and macro concerns in China and other major developing markets threatens the economic balance.

In the near term, after a lackluster performance by the S&P 500 components in Q3, the picture is expected to remain bleak in Q4 too. With results from 472 S&P 500 members already out, total Q3 earnings for the index are down -2.5% on -4.2% lower revenues, with 68.3% beating EPS estimates and only 41.9% coming ahead of top-line expectations. The lack of revenue growth did not come as a surprise given headwinds like global growth worries and a strong U.S. dollar. But the fact that so few companies managed to beat the lowered top-line estimates raised a few eyebrows.

The trend is expected to follow suit in Q4, for which estimates are fast falling, with total earnings for the S&P 500 index now expected to be down -6.5% from the same period last year. The magnitude of negative revisions in Q4 earnings estimates is greater than what we saw in the two preceding quarters.

Time for Value Investing

Indeed, more than ever, there is now the need to search for companies that can stand tall amid a lowered growth outlook. Only a fundamentally strong entity will have the caliber to optimize its growth potential in an unsupportive economic background. And for an investor, a foolproof approach to profit in such a backdrop is investing in undervalued stocks that more than 80% brokers recommend.

We firmly believe that it is time to readjust one’s portfolio by keeping the new high rate era in mind and capitalizing on the positives. One way of doing this is by adding value stocks.

5 Value Stocks to Bet On

With the help of our Zacks Stock Screener, we have selected stocks that carry a Zacks Rank #1 (Strong Buy) or #2 (Buy) and a value score of ‘A.’ We narrow down the list by picking Buy-rated stocks that have witnessed a relative price change (comparison of calendar year-to-date price change of each stock with that of the S&P 500 over the same time period) of more than 50%, so far in 2015.

Using our new style score system, one can locate stocks that have a solid upside potential. Our Value Style Score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount. Our research shows that stocks with Style Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1 or #2 handily beat others.