Welcome to Episode #452 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.
It’s time to do a simple value stock screen. Those screens usually include just one value fundamental such as a price-to-earnings (P/E) or price-to-sales (P/S) ratio along with a top Zacks Rank.
Anyone can run a basic value screen but you can only run one with the Zacks Rank short term recommendation system on Zacks.com.
Why include the Rank? The Zacks Rank covers over 4,000 stocks. It’s based on analyst revisions to earnings estimates. The top Rank of #1 (Strong Buy), is rare. On any given day less than 250 companies will be Strong Buys.
These are the best of the best. These are the companies where analysts are raising full year earnings estimates. And it usually means something good is going on at that company.
To add value to the screen, look for a price-to-sales (P/S) ratio under 1.0. A P/S ratio under 1.0 means an investor is getting the sales at a discount.
For example, a P/S ratio of 0.7 means an investor is paying only $0.70 for every $1.00 worth of sales. That’s a bargain.
Running a screen of Zacks #1 Rank (Strong Buys) and a P/S ratio of 1.0 or less gave 52 stocks.
That’s a lot of stocks to look through, however.
To narrow it down further, why not buy some cheap growth? To find those companies, you can add the PEG ratio to the P/S ratio. The PEG ratio is the price-to-earnings (P/E) divided by the growth.
A PEG ratio under 1.0 usually indicates a company has both growth and value. This is a unique characteristic.
Combining the PEG ratio with the Zacks Rank #1 (Strong Buy) and a low P/S ratio, this screen returned just 12 stocks.
This basic screen gives you the top Zacks Rank, which should mean rising earnings estimates, cheap sales and you’re getting growth.
What more could a value investor want?
1. TD SYNNEX Corp. (SNX)
TD SYNNEX is a global distributor, solutions aggregator and original design and contract manufacturer that partners with the entire technology ecosystem. It has 150,000 customers in over 100 countries with a portfolio including cybersecurity, analytics, mobility, and AI.
On June 25, 2026, TD SYNNEX reported a record fiscal second quarter of 2026 with revenue up 31% to $19.6 billion. Earnings are expected to jump 41.7% in fiscal 2026, while gaining another 14.1% in fiscal 2027.
TD SYNNEX was a Zacks Strong Buy at the time the podcast was recorded but has since fallen to a #3 (Hold), however, earnings estimates remain unchanged for fiscal 2026.
It’s still cheap. TD SYNNEX has a P/S ratio of just 0.3. It is also shareholder friendly. TD SYNNEX recently raised its dividend by 9%. It’s yielding 0.7%.
Should a technology distributor like TD SYNNEX be on your value stock watch list?
2. Oscar Health, Inc. (OSCR)
Oscar Health is a healthcare technology company that helps make high-quality and affordable care more accessible for millions of people through both individual and family plans on the ACA marketplace.
On Aug 6, 2026, Oscar Health reported record first half 2026 results and raised full year guidance. The analysts raised full year estimates as well, with the full year 2026 Zacks Consensus jumping to $1.54 from $0.63 in the last month. This is earnings growth of 191% as the company lost $1.69 in 2025.
Oscar Health is a Zacks Rank #1 (Strong Buy) stock.
It’s also still a value. Oscar Health trades with a PEG ratio of just 0.6.
Should a health insurance company like Oscar Health be on your value stock watch list?
3. PBF Energy Inc. (PBF)
PBF Energy is one of the largest independent refiners in the United States. It owns six refineries, including in Delaware, New Jersey, Ohio, Louisiana, and two in California.
PBF Energy reported strong second quarter 2026 results on July 30, 3036. Due to high free cash flow, it reduced gross debt by over $1 billion in the quarter.
Analysts are bullish. Three estimates have been revised higher for 2026 in the last 30 days. It has pushed the Zacks Consensus up to $15.74 from $10.94 in that period. That’s earnings growth of 481% as PBF Energy had a loss of $4.13 last year.
It is a golden age for the refineries.
Even though the shares are at new 5-year highs, PBF Energy is still cheap because earnings are soaring. It has a price-to-earnings (P/E) ratio of just 4.3. A P/E under 5.0 is extremely cheap. The earnings are undervalued.
PBF Energy is a Zacks Rank #1 (Strong Buy) stock.
Should a refiner like PBF Energy be on your value stock watch list?
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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