The $S&P 500 index(.SPX.US)$ is up about 24% for the year. Although the index has recently pulled back from the recent all-time high, many stocks remain at steep valuations. It's still possible to find overlooked stocks that offer value and could appeal to all investing styles, though.

Moreover, some prominent growth stocks have already started pulling back, a sign that Wall Street might be thinking twice about overvalued stocks. Against this backdrop, it looks like a perfect time to invest in stocks that trade at more reasonable valuations, particularly those that still have promising growth prospects. Therefore, I'll discuss seven overlooked stocks to buy before the Street catches on.

History suggests a market correction is looming right around the corner, yet no one can tell for sure when it will happen. In the light of such uncertainty, these overlooked stocks boast reasonable valuations with limited downside risk. Should a correction happen, their shareholders could have an easier time riding through the choppiness and preserving their capital. Therefore, our selection should particularly bode well with value investors.

With that said, here are seven overlooked stocks to watch during this holiday season:

Energy Transfer (ET)

52-Week Range: $6.03 – $11.55

Dividend Yield: 7.3%

Midstream energy group $Energy Transfer(ET.US)$ owns and operates infrastructure assets and 90,000 miles of pipelines to store, transport and process oil and gas. Its fee-based business model has limited commodity price sensitivity.

Energy Transfer released Q3 results in early November. Revenue increased 67% year-over-year (YOY) to $16.7 billion. Net income came in at $635 million, or 20 cents per diluted share, compared to a net loss of $655 million, or 24 cents loss per diluted share, in the prior-year quarter. Adjusted distributable cash flow stood at $1.31 billion.

Investors are pleased that the midstream company generates plenty of free cash flow, which it uses to pay down debt. For example, so far in 2021 it has reduced long-term debt by roughly $6 billion.

With a generous 7.3% dividend yield, ET stock is attractive for income investors. It is trading at $8.24 per share at the start of Dec. 8, up 39% year-to-date (YTD). Yet it is down about 8% over the past 30 days. ET shares are trading at just 5.6 times forward earnings and 0.4 times trailing sales. The stock's 12-month median price target is $14.

Epam Systems (EPAM)

52-Week Range: $314.08 – $725.40

Newtown, Pennsylvania-based $EPAM Systems(EPAM.US)$ offers software solutions and digital platform engineering services. Its clients rely on Epam during their digital transformation efforts and to build strategic online platforms. It was recently named the top IT services firm on Fortune's 100 Fastest-Growing Companies list for a third consecutive year.

Epam Systems released Q3 results in early November. Revenue increased 52% YOY to $988.5 million. Non-GAAP income came in at $179.6 million, or $2.42 per diluted share, up from $123.3 million, or $1.65 diluted earnings per share, in the prior-year quarter. Cash and equivalents totaled $1.4 billion at the end of the period.

After the announcement, CEO Arkadiy Dobkin said, "We are pleased with our strong third-quarter results, which reflect a wide-range of demand across all our geographies and industry groups."

The company boasts clients across various industries, including financial services, healthcare, retail, travel and hospitality. EPAM has forged strategic partnerships with software and cloud leaders, such as $Adobe(ADBE.US)$, $Salesforce(CRM.US)$, $Amazon(AMZN.US)$ and $Microsoft(MSFT.US)$.

EPAM stock opened on Dec. 8 at $648.87, up about 88% YTD. Shares are trading around 46 times forward earnings and 10.4 times trailing sales. The stock's 12-month median price target is $791.

Fiserv (FISV)

52-Week Range: $92.06 – $127.34

Brookfield, Wisconsin-based $Fiserv(FISV.US)$ is a financial technology (fintech) and global payments name. It offers merchant services and payment processing technologies to around 10,000 financial institutions and 6 million merchants. It has become a leading provider of outsourced information technology (IT) solutions for financial institutions.

Fiserv reported Q3 results in late Oct. Revenue increased 10% YOY to $4.16 billion. Adjusted net income came in at $987 million, or $1.47 per diluted share, up from $819 million or $1.20 per diluted share, in the previous period. The company generated free cash flow of $2.29 billion during the year's first nine months. Cash and equivalents ended the quarter at $942 million.

After the announcement, CEO Frank Bisignano said, "We posted another strong quarter of double-digit adjusted revenue and adjusted EPS growth as we continue to invest in organic and inorganic growth and demonstrate unmatched execution."

Fiserv's small-business offering Clover and omnichannel ecosystem Carat continue to grow at a rapid rate. While they currently account for a small portion of total revenue, both solutions boast strong pricing power.

The stock trades at $102.96 per share, down 9% YTD. Compared to peers, FISV stock looks undervalued, trading at 16 times forward earnings and 4.4 times trailing sales. The stock's 12-month median price target stands at $135.

GoPro (GPRO)

52-Week Range: $7.02 – $13.79

San Mateo, California-based $GoPro(GPRO.US)$ is known for its action cameras, as well as mounts, drones and appliances.

GoPro released Q3 results in early November. Revenue increased 13% YOY to $317 million. Non-GAAP net income came in at $55 million, or 34 cents per share, up from $31 million, or 20 cents per share, in the prior-year period. Cash and equivalents ended the quarter at $296 million.

On the metrics, CEO Nicholas Woodman said, "GoPro had an outstanding third quarter with strong revenue, earnings, margin, and cash flow growth that have led us to raise our margin and profitability outlook for the year. Strong demand, effectively managed supply chain and channel inventory combined with a successful new product launch to yield our highest gross margins since 2015."

Recent quarters have offered limited growth prospects. As a result, GoPro has taken on several new initiatives to turn the company around. Management has launched a direct-to-consumer business on its website, which has accounted for over half of total sales in the trailing 12 months and improved overall profitability. The company credits its free cash flow to its new subscription business.

GPRO stock is around $10.57 per share, up 30% YTD. Shares are trading at only 9 times forward earnings and 1.4 times trailing sales. The stock's 12-month median price target is $11.

IAC/InterActiveCorp (IAC)

52-Week Range: $92.30 – $179.12

New York-based $IAC/InterActiveCorp(IAC.US)$ is an internet media company well-known among investors as the company that has spun off prominent names like $Expedia(EXPE.US)$,$Match group(MTCH.US)$ and Ticketmaster, which has later become $Live Nation Entertainment(LYV.US)$.

IAC released Q3 results in early November. Revenue increased 30% YOY to $924 million. Net income declined to $60.7 million, or 65 cents per diluted share, down from $184.9 million, or $2.04 per diluted share, in the prior-year quarter. Cash and equivalents ended the period at $3.4 billion.

IAC has a solid track record in growing its online brands. After spinning off $Vimeo(VMEO.US)$, the company has ample cash to focus on new opportunities. Its remaining assets constitute an attractive mix of high-quality businesses, including Angi, Care.com, Dotdash and Turo.

The company recently acquired Meredith — a leading media company with well-known brands such as People, Better Homes & Gardens and Allrecipes — for $2.7 billion. The acquisition aims to create synergies with IAC's online publishing arm Dotdash.

IAC stock is around $135 territory, up 7% YTD. It has fallen 7% over the past month. Shares are trading at 3.4 times trailing sales. The stock's 12-month median price target stands at $183.

Nokia (NOK)

52-Week Range: $3.75 – $9.79

Finland-based $Nokia Oyj(NOK.US)$ is a leading telecom and networking equipment vendor, selling wireless and fixed-line hardware, software, and services. It is also a leading player in the rollout of 5G technology. 

Nokia released Q3 results in late October. Net revenue increased 2% YOY to $6.13 billion. The company reported net income of $398 million, or 7 cents per diluted share, up from $224 million in the prior-year period. Free cash flow stood at $794 million.

After the announcement, CEO Pekka Lundmark said, "We delivered another great quarter driven by our increased investments in technology leadership and strong market demand."

Like many technology names, the global semiconductor shortage has taken a toll on NOK stock. Nevertheless, the company anticipates better metrics once supply-chain issues are resolved in the coming quarters.

NOK stock currently hovers around $5.89 territory, up 50% YTD. Shares are trading for 14.6 times forward earnings and 1.3 times trailing sales. The stock's 12-month median price target is $7.01.

Petco Health and Wellness (WOOF)

52-Week Range: $17.82 – $31.08

San Diego, California-based Petco is one of the largest pet products retailers stateside. Pet owners rely on it to buy a wide range of pet care products.$Petco Health and Wellness(WOOF.US)$

Meanwhile, Petco has been opening full-service vet care centers within its retail stores. Additionally, Petco has launched various membership programs that might appeal to a range of pet owners.

Petco announced Q3 results on Nov. 18. Net revenue soared 15% YOY to $1.44 billion. Adjusted net income came in at $54 million, or 20 cents per diluted share, compared to $13.6 million, or 7 cents per diluted share, a year ago. The company generated free cash flow of $124 million.

On the results, CEO Ron Coughlin said, "Q3 marked our sixth consecutive quarter of double-digit growth with a 15 percent Q3 comp, lapping 17 percent a year ago, giving us confidence to raise guidance for Full Year 2021."

Last year, Americans spent over $100 billion on their much loved pet companions. Therefore, WOOF stock looks well-positioned to benefit from the expanding pet market. Management increased guidance for the full year, anticipating adjusted earnings per share of 86 – 88 cents, up from the previous range of 81-85 cents.

WOOF stock hovers a bit above $20, down 29% from its initial public offering high in January. It has fallen almost 19% over the past 30 days. Shares are trading at 20 times forward earnings and 0.6 times trailing sales. The stock's 12-month median price target stands at $26.50.