Screening for Top Value Stocks with Growth

• (0:30) - Where Can You Find Strong Value Stocks Right Now?
• (8:00) - Tracey’s Top Stock Picks For Your Watchlist
• (33:05) - Episode Roundup: BTSG, LCUT, PSX
•                 [email protected]

Welcome to Episode #443 of the Value Investor Podcast.

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

With stock market valuations reaching new highs, many investors might think there aren’t many value stocks left out there.

But that would be wrong.  

Screening for Growth and Value

Tracey created her own screen to find top value stocks. She included only Zacks #1 Rank (Strong Buy) stocks. This is the top Zacks Rank and is a narrow universe of stocks. There are only 224 Zacks #1 Rank stocks right now out of over 4,000 stocks covered by the Zacks Rank.

A top Zacks Rank means that analysts are raising their earnings estimates.

To find value, the screen included a PEG ratio under 1.0. The PEG ratio is the price-to-earnings ratio divided by earnings growth. A PEG under 1.0 means a company has both growth and value.

The screen also looked for a price-to-sales (P/S) ratio under 1.0. A P/S ratio under 1.0 means you are buying the sales at a discount. A P/S ratio of 0.2 means you are paying $0.20 for every $1.00 of sales.

This simple screen returned just twelve stocks.

3 Strong Buy Stocks with Growth and Value

1. BrightSpring Health Services, Inc. (BTSG)

BrightSpring Health Services offers primary care in the home with a focus on senior and specialty patients. It operates in all 50 states and serves 400,000 patients daily.

Shares of BrightSpring Health Services are up 68.8% year-to-date but it’s still a value stock. Earnings are expected to jump 67% in 2026 and another 19.2% in 2027.

As a result, BrightSpring Health Services has an attractive PEG ratio of just 0.8. A PEG under 1.0 indicates growth and value.

BrightSpring Health Services is a Zacks Rank #1 (Strong Buy).

Should a healthcare company like BrightSpring Health Services be on your value stock short list?

2. Lifetime Brands, Inc. (LCUT)

Lifetime Brands is a leading provider of kitchenware, tableware and other products for the home. It’s well-known brands include KitchenAid and Pfaltzgraff. Lifetime Brands is a small cap company with a market cap of just $207 million.

Shares of Lifetime Brands have soared 125% in 2026. Last quarter, Home Solutions segment was up 23% as the Dolly Parton brand was strong. But earnings are expected to fall 9.9% this year.

It’s cheap, with forward price-to-earnings (P/E) ratio of 12.4 and a PEG ratio of just 0.9.

Lifetime Brands pays a dividend, currently yielding 1.9%.

It’s also a Zacks Rank #1 (Strong Buy) stock.

Should a consumer play like Lifetime Brands be on your short list or is the good news already priced in this year?

3. Phillips 66 (PSX)

Phillips 66 is a large cap American refiner. It has a market cap of $71 billion and operates in Refining, Midstream, Marketing, Chemicals, Asphalt, Fuels and Aviation.

Shares of Phillips 66 are up 39% year-to-date on the favorable crack spreads due to the Middle East war. Earnings are expected to rise 177% this year.

Phillips 66 is also dirt cheap. It has a forward P/E of just 10. A P/E of 10 or less indicates deep value.

Phillips 66 recently raised its quarterly dividend by 7%. It’s now yielding 2.9%.

It’s also a Zacks Rank #1 (Strong Buy) stock.

Should a refiner like Phillips 66 be on your value stock short list?

What Else Should You Know About Value Stocks with Growth?

Tune into this week’s podcast to find out.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Source Zacks-com