A Dream Combination: 3 Value Stocks with Growth

• (0:30) - Stock Screener: Can You Find Strong Value Stocks With Growth?
• (6:45) - Tracey’s Top Stock Picks 
• (22:25) - Episode Roundup: ADDYY, ARRY, NX
•                 [email protected]

Welcome to Episode #413 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.

Growth stocks continue to rally. This usually depresses value investors who think they can’t be in that trade.

But what if they could? What if value investors could buy cheap stocks that also have growth?

Screening for Value Stocks with Growth

There’s one key metric value investors can rely on to find value plus growth and that is the PEG ratio. The PEG ratio, first utilized by Warren Buffett’s boss and mentor, Benjamin Graham, uses the price-to-earnings (P/E) ratio divided by earnings growth.

Investors get the best of both worlds, both value and growth, with one ratio. The PEG must be below 1.0 to get the cheapest stocks.

Tracey also added the top Zacks Ranks of #1 (Strong Buy) and #2 (Buy) and screened for stocks over $5 so as to not get any penny stocks.

The screen also looks for current average broker recommendations of 2.5 and under.

This screen returned 19 matches.

3 Value Stocks with Growth

1. Adidas AG (ADDYY)

Adidas, the large cap athletic shoe and apparel company, is expected to see earnings grow 88.3% in 2025 and 47.3% in 2026.

Why are Adidas shares down 17.6% over the last 5 sessions? The shoe retailers are facing tariff risks and the possibility of a consumer slowdown.

Adidas’ price-to-earnings (P/E) ratio isn’t as low as others. It’s trading at 26x. But with that big growth, the PEG is still low, at 0.5.

Is Adidas a deal after this sell-off?

2. Quanex Building Products Corp. (NX)

Quanex Building Products is a small cap company with a mark cap of $918 million. It manufactures products for the building industry, both residential and commercial, including doors and windows.

Earnings for Quanex are expected to rise 19.6% in 2025 and another 14.1% in 2026. Shares have come down 18.8% year-to-date as building has slowed. With a forward P/E of just 7.4, Quanex has a PEG ratio of 0.5.

Quanex also pays a dividend, yielding 1.6%.

Should a small cap company like Quanex be on your short list?

3. Array Technologies, Inc. (ARRY)

Array Technologies is a small cap company which makes solar tracking technology. The solar industry has been uncertain in 2025 with tariffs and changes to solar incentives.

Shares of Array Technologies have fallen 11.7% in the last week. Year-to-date it’s up 1%.

But earnings are expected to be up 10% in 2025 and 35% in 2026. Array has a low P/E of just 9.9. A P/E ratio under 10 usually indicates a company is dirt cheap. With the expected growth, it has a PEG ratio of 0.46.

Should value investors take a chance on Array Technologies?

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).

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