Value investing — the practice of buying stocks trading below their intrinsic worth — has been one of the most proven strategies in financial history. Pioneered by Benjamin Graham and refined by Warren Buffett, the core premise is simple: buy quality businesses when the market prices them at a discount, then let time and fundamentals close the gap.
In 2026, opportunities for value investors continue to emerge as market rotations create temporary mispricings. Sectors that fell out of favor during the growth rally of recent years now present compelling valuations, while individual companies undergoing turnarounds or facing temporary headwinds offer asymmetric risk-reward profiles.
Our value stock rankings go beyond simple P/E screening. We evaluate each company across multiple valuation metrics — P/E, P/B, P/S, and EV/EBITDA — relative to sector peers, then overlay quality and stability checks to eliminate "value traps." The result is a curated list of genuinely undervalued companies with the fundamental strength to deliver returns as the market recognizes their true worth.
Top 10 Best Value Stocks 2026 Picks
| # | Ticker | Composite | Rating | Value Score |
|---|---|---|---|---|
| 1 | PTN | 65.5 | 99.2 | |
| 2 | YALA | 74.9 | 99.2 | |
| 3 | FMX | 73.6 | 98.9 | |
| 4 | MT | 74.7 | 98.4 | |
| 5 | GGB | 72.7 | 98.3 | |
| 6 | CINT | 66.5 | 98.0 | |
| 7 | ASRT | 71.4 | 98.0 | |
| 8 | UL | 77.9 | 97.8 | |
| 9 | PUK | 72.8 | 97.4 | |
| 10 | BUD | 73.7 | 97.3 |
Rankings are based on our proprietary 6-factor quantitative model. Data sourced from institutional-grade providers and refreshed daily. Past performance does not guarantee future results.
Top 3 Picks: A Closer Look
These three stocks represent the deepest value opportunities in our current screen, combining significant undervaluation with fundamental quality.
1. PTN — PALATIN TECHNOLOGIES INC
PALATIN TECHNOLOGIES INC earns a composite score of 65.5 with a Value Score of 99.2. Operating in the Manufacturing sector, the stock currently holds a Buy rating based on our 6-factor quantitative model. Quality score stands at 75.6, while momentum registers 88.1 — indicating strong positive price trends. View full PTN analysis.
2. YALA — Yalla Group Ltd
Yalla Group Ltd earns a composite score of 74.9 with a Value Score of 99.2. Operating in the Services sector, the stock currently holds a Buy rating based on our 6-factor quantitative model. Quality score stands at 88.7, while momentum registers 79.8 — indicating strong positive price trends. View full YALA analysis.
3. FMX — MEXICAN ECONOMIC DEVELOPMENT INC
MEXICAN ECONOMIC DEVELOPMENT INC earns a composite score of 73.6 with a Value Score of 98.9. Operating in the Manufacturing sector, the stock currently holds a Buy rating based on our 6-factor quantitative model. Quality score stands at 82.8, while momentum registers 62.6 — indicating strong positive price trends. View full FMX analysis.
Methodology
We screen the U.S. equity universe for stocks with a value score of 70 or higher, indicating they trade at significant discounts to sector peers across P/E, price-to-book, price-to-sales, and EV/EBITDA ratios. Each stock must also carry a composite score of 55+ and a Buy or Strong Buy rating.
The composite score requirement filters out value traps — stocks that are cheap for good reason, such as deteriorating earnings, excessive debt, or structural business decline. By requiring multi-factor strength, we ensure the cheapness reflects opportunity rather than fundamental weakness.
The list is sorted by value score, surfacing the deepest discounts first. All data is refreshed daily using institutional-grade sources, and valuations are recalculated as new financial statements are filed.
Read our full methodology for a detailed explanation of the 6-factor model, factor weights, and data sources.
How to Use This List
Value investing requires patience. Stocks on this list may not rally immediately — the market can remain irrational longer than expected. Plan for a 12-24 month holding period to allow the value thesis to play out.
Diversify across sectors when building a value portfolio. Cheap stocks in a single sector may all face the same headwind, so spreading across industries reduces concentration risk.
Use each stock's detail page to review the full factor breakdown. Pay special attention to the quality score — a high-value, high-quality stock is the ideal combination, while a high-value, low-quality stock may be a trap.
Get Weekly Stock Picks in Your Inbox
Join thousands of investors receiving our free Sunday newsletter with top-ranked stock picks, market analysis, and quantitative insights.
By subscribing, you agree to our privacy policy. We'll never share your email with third parties.
Frequently Asked Questions
What is a value stock?
A value stock is a company trading below its estimated intrinsic value based on fundamental metrics like earnings, book value, revenue, and cash flow. Our value score compares each stock's multiples against sector peers to identify the most attractively priced opportunities.
How do you avoid value traps?
We avoid value traps by requiring a minimum composite score of 55 and a Buy or Strong Buy rating. This multi-factor check ensures that cheap stocks also have adequate quality, momentum, and stability — filtering out companies that are cheap due to fundamental deterioration.
Is value investing still effective in 2026?
Yes. While growth stocks dominated in certain periods, academic research consistently shows the value premium persists over long time horizons. The Fama-French three-factor model demonstrates that value stocks have historically outperformed growth stocks on a risk-adjusted basis.
What is the difference between value score and P/E ratio?
P/E ratio is a single metric comparing price to earnings. Our value score is a composite of multiple valuation ratios (P/E, P/B, P/S, EV/EBITDA) ranked against sector peers. This multi-metric approach provides a more complete picture of relative valuation.
How often does the value stock list change?
The list updates daily as stock prices and factor scores are recalculated. Significant changes typically occur after earnings releases or major price moves that shift valuation multiples.
Can a stock be both a growth stock and a value stock?
Yes — these are sometimes called "GARP" (Growth at a Reasonable Price) stocks. A company growing revenues above average while trading at a discount to peers scores well on both our growth and value metrics. These dual-factor stocks often represent the strongest opportunities.
Important Disclaimer
This content is for informational purposes only and does not constitute investment advice, a recommendation, or a solicitation to buy or sell any security. All investments involve risk, including the possible loss of principal. Past performance does not guarantee future results. The quantitative model used to generate these rankings is based on historical data and may not predict future outcomes. Always conduct your own research and consult a qualified financial advisor before making investment decisions. Blank Capital Research is not a registered investment advisor.