July brings a busy earnings season to Wall Street. Amidst fears of an impending recession, investors are increasingly looking for value stocks with sound fundamentals. For instance, JPMorgan Chase (NYSE:JPM) suggests the value rotation play has been at its highest level in four years.

Meanwhile, ETF Trends writes, “value equities are trouncing their rivals this year, and while the gap between the two is narrowing, some market observers believe there’s still fuel left in the value tank.”

Our selection of value stocks might have taken a beating over the past few months yet still offer long-term upside at attractive prices.

With that information, here are seven value stocks that could gain traction in July:

ABB (ABB)

52-Week Range: $25.80 – $39.11

ABB (NYSE:ABB) is widely known for its automation, robotics, electrification and motion products. Recent metrics suggest it has over 13% of the global industrial robot market.

The industrial automation giant released first-quarter metrics in late April. Revenue increased 1% year-over-year (YOY) to $6.96 billion. Net income came in at 31 cents per share, up from 25 cents a year ago. Cash and equivalents ended the period at $6.5 billion.

In May, ABB and Shell (NYSE:SHEL) announced the launch of Germany’s first nationwide network of Terra 360 chargers, the world’s fastest electric vehicle (EV) chargers. Analysts suggest ABB’s Terra 360 may be a game changer, delivering “100km of range in less than three minutes.”

The board also announced its new share repurchase program of $3 billion. The dividend yield currently stands at a generous 3.3%.

So far in 2022, ABB stock has fallen 29% and is trading near 52-week lows. Shares are trading at 17.9 times forward earnings and 1.89 times sales. Wall Street’s 12-month median price forecast for ABB stock stands at $35.57.

Alcao (AA)

52-Week Range: $31.00 – $98.09

By production volume, Alcoa (NYSE:AA) is the world’s largest bauxite miner and alumina refiner. The company is also a leading manufacturer of primary aluminum.

Alcoa reported Q1 results in late April. Revenue increased 15% YOY to $3.29 billion. Net income more than doubled YOY. Adjusted earnings came in at $3.06 per share, compared to 79 cents a year ago. Cash and equivalents ended the period at $1.6 billion.

Aluminum production declined 10% sequentially in Q1 as the company cut back production in Spain. Alcoa also lowered its bauxite shipment projection by 2 million metric tons for 2022 after halting bauxite shipments to Russia. Yet, given aluminum’s diverse use across industries, the company is expected to see substantial cash flow growth in 2022.

AA stock has lost 23% year-to-date (YTD) but has appreciated almost 22% over the past 12 months. Shares are trading at a bargain 4.2 times forward earnings and 0.7 times sales. The 12-month median price forecast for Alcoa stock is at $85.

Albertsons (ACI)

52-Week Range: $19.05 – $37.99

Albertsons (NYSE:ACI) is one of the leading grocers stateside. It operates close to 2,300 stores under 24 different brand names across the country.

The retailer issued Q4 FY’21 results on April 12. Revenue increased 10% YOY to $17.4 billion. Adjusted net income was 75 cents per share, compared to 60 cents a year ago. Cash and equivalents ended the period at $2.9 billion.

Analysts point out that Albertson’s popular loyalty program and ease of checkout through contactless payments have boosted top line growth.

Earlier in the year, the board announced it was considering “potential strategic alternatives aimed at enhancing Albertsons’ growth and maximizing shareholder value.” Since then, Wall Street has been looking at what the food and drug retailer may offer for long-term investors.

ACI stock is down 11% for the year. It currently generates a 1.7% dividend yield. Shares look cheap relative to its peers at 10.1 times forward earnings and 0.2 times sales. Meanwhile, the 12-month median price forecast for ACI stock stands at $37.

EOG Resources (EOG)

52-week range: $60.03 – $145.98

Energy play EOG Resources (NYSE:EOG) is our next value stock. Like other oil stocks, EOG has been riding the wave of higher crude prices and enjoying gusher of cash.

The oil company announced Q4 2021 results on May 5. Revenue increased 8% YOY to $3.98 billion. Adjusted net income was $4 per share, compared to $1.62 per share a year ago. Cash and equivalents ended the period at $4 billion. Its operating margin is more than 30% right now, well above its pandemic lows.

EOG has a clear-cut capital allocation policy that returns roughly 60% of its free cash flow to shareholders. The current price supports a dividend yield of 2.5%.

So far in 2022, EOG stock has returned 25%. Shares are changing hands at 7.3 times forward earnings and 3 times sales. The 12-month median price forecast for EOG Resources stock is at $152.

Expedia (EXPE)

52-Week Range: $92.22 – $217.72

Next up is Expedia (NASDAQ:EXPE), one of the largest online travel agencies worldwide. The company operates several travel websites, including Expedia.com, Travelocity, Hotels.com and Orbitz.

Expedia reported Q1 results on May 2. The vacation travel rebound helped push revenue up 81% YOY to $2.25 billion. Net loss came in at 47 cents per share, down from a loss of $2.02 per share a year ago. Cash and equivalents ended the period at $8.14 billion.

Gross bookings in the first quarter grew 58% YOY. Furthermore, analytics company GlobalData recently suggested international travel is on a multi-year growth trajectory. As a result, we could see a full recovery by 2025.

However, rising inflation and slowing economic growth may delay the anticipated vacation travel rebound.

EXPE stock has fallen 48% YTD and is trading near 52-week lows. Shares are trading at 15.1 times forward earnings and 1.6 times sales. The 12-month median price forecast for Expedia stock stands at $173.

Leggett & Platt (LEG)

52-Week Range: $33.19 – $52.44

Industrial play Leggett & Platt (NYSE:LEG) manufactures a wide range of engineered components used in consumer goods such as bedding, flooring, automotive or furniture. Metrics suggest its products have the “largest market share is in the Wire & Spring Manufacturing industry, where they account for an estimated 23.2% of total industry revenue.”

On May 2, Leggett & Platt announced Q1 financials. Revenue increased 15% YOY to $1.32 billion. Adjusted net earnings came in at 66 cents per diluted share, compared to 64 cents a year ago. Cash and equivalents ended the period at $327 million.

All segments contributed to the 13% organic sales growth in the first quarter. However, sales volume in the bedding products segment declined by 9%. Wall Street will be scrutinizing the Q2 results expected in August both in terms of segment revenues and margins.

LEG stock has dropped almost 16% YTD.  At present, the stock supports a generous 5% dividend yield. Shares are trading at a relatively cheap 0.9 times sales. The 12-month median price forecast for LEG stock is at $41.

Target (TGT)

52-Week Range: $138.58 – $268.98

Our final value stock is Target (NYSE:TGT), which operates more than 1,900 stores in North America. The retailer enjoyed strong revenue growth during the pandemic. Sales of Target-owned brands soared by 18% in 2021 to more than $30 billion.

Target released Q1 results on May 18. Revenue increased 4% YOY to $25.2 billion. Adjusted earnings came in at $2.19 per diluted share, down from $3.69 in the prior-year quarter. Cash and equivalents ended the period at $1.11 billion.

Management warned Wall Street that the shift in consumer spending away from discretionary purchases has left the company with excess inventory. At the end of April, Target reported $15.1 billion in inventory, up from $10.5 billion in the prior-year quarter.

As a result, the retail giant recently announced an aggressive plan to downsize this inventory. It also lowered its Q2 operating margin projection.

TGT stock has tumbled 39% YTD. Meanwhile, this Dividend King currently generates a yield of 3%. Shares are trading at an attractive valuation of 15.1 times forward earnings and just 0.7 times sales. Analysts’ 12-month median price forecast for Target stock stands at $181.

On the date of publication, Tezcan Gecgil, Ph.D., did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.