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Zacks Value Trader Highlights: Borg Warner, General Motors, Phillips 66, Adient and Sirius XM
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For Immediate Release
Chicago, IL – January 12, 2026 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2815360/5-classic-value-stocks-to-start-2026)
5 Classic Value Stocks to Start 2026
Welcome to Episode #426 of the Value Investor Podcast.
(0:15) - 2026 Classic Value Screen Breakdown
(7:50) - Top Picks To Keep On Your Radar Right Now
Value Investor portfolio, shares some of her top value investing tips and stock picks.
For the last 9 years, for the first podcast of the year, Tracey has run the same Zacks Premium value stock screen called: Classic Value with Zacks #1 and #2 Rank Stocks. This screen returns the best of the cheap stocks.
She also re-visited the prior year's classic value stocks to see how they did.
This is Tracey's Favorite Zacks Value Stock Screen
Zacks has a lot of Premium value screens but Classic Value with Zacks #1 and #2 Rank Stocks is Tracey's favorite.
Not only does it include Zacks Rank #1 (Strong Buy) and #2 (Buy) stocks but it must have low classic value fundamentals including a price-to-earnings (P/E) ratio under 20, a price-to-sales (P/S) ratio under 1.0, a PEG ratio, which measures value and growth, must also be under 1.0. Additionally, it looks at price to cash flow and price-to-book (P/B) ratios too.
The companies must have a stock price over $5 and average daily volume must be over 100,000 shares.
Few companies are going to be this cheap AND have the top Zacks Ranks. The top Zacks Ranks indicate rising earnings estimates.
This screen has it all if you're looking for top value stocks.
It returned 9 stocks. Over the years, it has returned as many as 12 and as few as 5.
Borg Warner makes mobility solutions including modular batter systems, drive systems and electric boosting technologies.
Shares of Borg Warner jumped 51% over the last year but it's still cheap. It has a forward P/E of just 9.5. A P/E under 10 usually means a stock is dirt cheap. Earnings are expected to rise 9% in 2025 and another 6.8% in 2026.
Borg Warner is a Zacks #2 (Buy) stock.
Should Borg Warner be on your short list for 2026?
General Motors manufactures automobiles worldwide. While earnings are expected to fall 2.6% in 2025, earnings are forecast to rise 12.9% in 2026.
General Motors was also in the screen in 2025. It was up 57.5% last year but it remains cheap. In Jan 2025, it had a forward P/E of just 4.8 but it's still a value in 2026 with a forward P/E of 7.3.
General Motors is a Zacks Rank #1 (Strong Buy) stock.
Is it too late to buy General Motors after it's big rally?
Phillips 66 is an energy company that operates 13 refineries. It also handles chemicals, midstream, marketing and specialties.
Shares of Phillips 66 have jumped 22.7% in the last year. Earnings are expected to rise 0.7% in 2025 and another 97.6% in 2026. Phillips 66 has a forward P/E of just 11.8. It also pays a dividend, yielding 3.3%.
Phillips 66 is a Zacks Rank #1 (Strong Buy) stock.
Should an energy company like Phillips 66 be on your 2026 short list?
Sirius XM is an audio entertainment company. It has a market cap of $7.2 billion.
Shares of Sirius are trading near their 5-year lows. They are only up 1.1% in the last year. However, Sirius XM pays a dividend, currently yielding 5%.
Earnings are expected to rise 55.6% in 2025 and another 11.9% in 2026. Sirius XM is dirt cheap, with a forward P/E of just 7. A P/E under 10 is extremely cheap.
Sirius XM is a Zacks Rank #2 (Buy) stock.
Should Sirius XM be on your short list for 2026?
What Else Should You Know About 2026's Classic Value Stocks?
Tune into this week's podcast to find out.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Value Trader Highlights: Borg Warner, General Motors, Phillips 66, Adient and Sirius XM
For Immediate Release
Chicago, IL – January 12, 2026 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2815360/5-classic-value-stocks-to-start-2026)
5 Classic Value Stocks to Start 2026
Welcome to Episode #426 of the Value Investor Podcast.
Value Investor portfolio, shares some of her top value investing tips and stock picks.
For the last 9 years, for the first podcast of the year, Tracey has run the same Zacks Premium value stock screen called: Classic Value with Zacks #1 and #2 Rank Stocks. This screen returns the best of the cheap stocks.
She also re-visited the prior year's classic value stocks to see how they did.
This is Tracey's Favorite Zacks Value Stock Screen
Zacks has a lot of Premium value screens but Classic Value with Zacks #1 and #2 Rank Stocks is Tracey's favorite.
Not only does it include Zacks Rank #1 (Strong Buy) and #2 (Buy) stocks but it must have low classic value fundamentals including a price-to-earnings (P/E) ratio under 20, a price-to-sales (P/S) ratio under 1.0, a PEG ratio, which measures value and growth, must also be under 1.0. Additionally, it looks at price to cash flow and price-to-book (P/B) ratios too.
The companies must have a stock price over $5 and average daily volume must be over 100,000 shares.
Few companies are going to be this cheap AND have the top Zacks Ranks. The top Zacks Ranks indicate rising earnings estimates.
This screen has it all if you're looking for top value stocks.
It returned 9 stocks. Over the years, it has returned as many as 12 and as few as 5.
5 Classic Value Stocks for 2026
1. Borg Warner Inc. (BWA - Free Report)
Borg Warner makes mobility solutions including modular batter systems, drive systems and electric boosting technologies.
Shares of Borg Warner jumped 51% over the last year but it's still cheap. It has a forward P/E of just 9.5. A P/E under 10 usually means a stock is dirt cheap. Earnings are expected to rise 9% in 2025 and another 6.8% in 2026.
Borg Warner is a Zacks #2 (Buy) stock.
Should Borg Warner be on your short list for 2026?
2. General Motors Co. (GM - Free Report)
General Motors manufactures automobiles worldwide. While earnings are expected to fall 2.6% in 2025, earnings are forecast to rise 12.9% in 2026.
General Motors was also in the screen in 2025. It was up 57.5% last year but it remains cheap. In Jan 2025, it had a forward P/E of just 4.8 but it's still a value in 2026 with a forward P/E of 7.3.
General Motors is a Zacks Rank #1 (Strong Buy) stock.
Is it too late to buy General Motors after it's big rally?
3. Phillips 66 (PSX - Free Report)
Phillips 66 is an energy company that operates 13 refineries. It also handles chemicals, midstream, marketing and specialties.
Shares of Phillips 66 have jumped 22.7% in the last year. Earnings are expected to rise 0.7% in 2025 and another 97.6% in 2026. Phillips 66 has a forward P/E of just 11.8. It also pays a dividend, yielding 3.3%.
Phillips 66 is a Zacks Rank #1 (Strong Buy) stock.
Should an energy company like Phillips 66 be on your 2026 short list?
4. Adient plc (ADNT - Free Report)
Adient makes automotive seating. It's a small cap company with a market cap of $1.6 billion.
Shares of Adient jumped 21% over the last year. Earnings are expected to fall 0.5% in fiscal 2026 but rebound in fiscal 2027, growing 60.4%.
Adient is cheap with a forward P/E of just 10.6. It's a Zacks Rank #2 (Buy) stock.
Should value investors be looking at small cap value stocks like Adient in 2026?
5. Sirius XM Holdings Inc. (SIRI - Free Report)
Sirius XM is an audio entertainment company. It has a market cap of $7.2 billion.
Shares of Sirius are trading near their 5-year lows. They are only up 1.1% in the last year. However, Sirius XM pays a dividend, currently yielding 5%.
Earnings are expected to rise 55.6% in 2025 and another 11.9% in 2026. Sirius XM is dirt cheap, with a forward P/E of just 7. A P/E under 10 is extremely cheap.
Sirius XM is a Zacks Rank #2 (Buy) stock.
Should Sirius XM be on your short list for 2026?
What Else Should You Know About 2026's Classic Value Stocks?
Tune into this week's podcast to find out.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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https://www.zacks.com/performance
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.