We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 PEG Value Stocks Trading at Attractive Discounts in July
At a time when volatility strikes every second day, investors often rely on value investing rather than other options like growth or momentum. As soon as other investors start selling their stocks at a cheaper rate in times of market uncertainty, value investors take this as an opportunity to pick good stocks at a discounted price.
Several stocks that have surged significantly in the recent past have shown the overwhelming success of this pure-play investment strategy. Here, we discuss four such stocks — Aveanna Healthcare, ArcBest Corp., Nexa Resources and ORIX Corp.
However, this apparently simple value investment technique has some drawbacks and not understanding the strategy properly may often lead to “value traps.” In such a situation, these value picks start to underperform over the long run as the temporary problems, which once drove the share price down, turn out to be persistent.
There are many value investment yardsticks, such as dividend yield, P/E or P/B, which are simple and can single out whether a stock is trading at a discount.
However, for investors looking to escape such value traps, it is also vital to determine where the stock would be headed in the next 12 to 24 months. Warren Buffett advises these investors to focus on the earnings growth potential of a stock. This is where lies the importance of a not-so-popular value investing metric, the PEG ratio.
PEG Ratio at a Glance
The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate
A low PEG ratio is always better for value investors.
While P/E alone fails to identify a true value stock, PEG helps find the intrinsic value of a stock.
There are some drawbacks to using the PEG ratio. It doesn’t consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.
Hence, PEG-based investing can turn out to be even more rewarding if some other relevant parameters are also taken into consideration.
Here are four stocks that qualified the screening:
Aveanna Healthcare: This is a diversified U.S. home healthcare company providing pediatric and adult care through home-based services. Aveanna Healthcare operates across Private Duty Services, Home Health & Hospice and Medical Solutions, helping patients receive skilled nursing, therapy and personal care at home while reducing hospital and nursing facility use.
AVAH currently has a Zacks Rank #2 and a Value Score of A. Aveanna Healthcare also has an impressive five-year expected growth rate of 14.9%.
ArcBest: Headquartered in Fort Smith, AR, ArcBest is an integrated logistics company offering less-than-truckload shipping through ABF Freight and asset-light services, including truck brokerage, managed transportation, intermodal, warehousing and international logistics. It operates through Asset-Based and Asset-Light segments, providing integrated supply chain solutions for diverse customer shipping needs.
Nexa: Headquartered in Luxembourg, Nexa is a global zinc mining and smelting company operating through the Mining and Smelting segments. It owns polymetallic mines in Peru and Brazil, zinc smelters in both countries and produces zinc, gold, sulfuric acid and other metals and by-products for industrial markets.
Apart from a discounted PEG and P/E, Nexa currently has a Zacks Rank #1 and a Value Score of A. NEXA has a long-term historical growth rate of 49%.
ORIX: It provides diversified financial services across Japan, the United States and other global markets. ORIX operates across businesses including leasing, real estate, private equity, renewable energy, insurance, banking, consumer finance and aircraft, ship, investment and asset management services.
ORIX has a Zacks Rank #1 and a Value Score of A. IX also has an impressive five-year expected growth rate of 10.1%.
Why Haven't You Looked at Zacks' Top Stocks?
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 access their live picks without cost or obligation.
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.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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.
View the Zacks #1 Rank List
Image: Bigstock
Zacks.com featured highlights include Aveanna Healthcare, ArcBest, Nexa Resources and ORIX
For Immediate Release
Chicago, IL – July 6, 2026 – Stocks in this week’s article are Aveanna Healthcare (AVAH - Free Report) , ArcBest Corp. (ARCB - Free Report) , Nexa Resources (NEXA - Free Report) and ORIX Corp. (IX - Free Report) .
4 PEG Value Stocks Trading at Attractive Discounts in July
At a time when volatility strikes every second day, investors often rely on value investing rather than other options like growth or momentum. As soon as other investors start selling their stocks at a cheaper rate in times of market uncertainty, value investors take this as an opportunity to pick good stocks at a discounted price.
Several stocks that have surged significantly in the recent past have shown the overwhelming success of this pure-play investment strategy. Here, we discuss four such stocks — Aveanna Healthcare, ArcBest Corp., Nexa Resources and ORIX Corp.
However, this apparently simple value investment technique has some drawbacks and not understanding the strategy properly may often lead to “value traps.” In such a situation, these value picks start to underperform over the long run as the temporary problems, which once drove the share price down, turn out to be persistent.
There are many value investment yardsticks, such as dividend yield, P/E or P/B, which are simple and can single out whether a stock is trading at a discount.
However, for investors looking to escape such value traps, it is also vital to determine where the stock would be headed in the next 12 to 24 months. Warren Buffett advises these investors to focus on the earnings growth potential of a stock. This is where lies the importance of a not-so-popular value investing metric, the PEG ratio.
PEG Ratio at a Glance
The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate
A low PEG ratio is always better for value investors.
While P/E alone fails to identify a true value stock, PEG helps find the intrinsic value of a stock.
There are some drawbacks to using the PEG ratio. It doesn’t consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.
Hence, PEG-based investing can turn out to be even more rewarding if some other relevant parameters are also taken into consideration.
Here are four stocks that qualified the screening:
Aveanna Healthcare: This is a diversified U.S. home healthcare company providing pediatric and adult care through home-based services. Aveanna Healthcare operates across Private Duty Services, Home Health & Hospice and Medical Solutions, helping patients receive skilled nursing, therapy and personal care at home while reducing hospital and nursing facility use.
AVAH currently has a Zacks Rank #2 and a Value Score of A. Aveanna Healthcare also has an impressive five-year expected growth rate of 14.9%.
ArcBest: Headquartered in Fort Smith, AR, ArcBest is an integrated logistics company offering less-than-truckload shipping through ABF Freight and asset-light services, including truck brokerage, managed transportation, intermodal, warehousing and international logistics. It operates through Asset-Based and Asset-Light segments, providing integrated supply chain solutions for diverse customer shipping needs.
ArcBest currently has a Zacks Rank #1 and a Value Score of B. ARCB also has an impressive five-year expected growth rate of 37.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nexa: Headquartered in Luxembourg, Nexa is a global zinc mining and smelting company operating through the Mining and Smelting segments. It owns polymetallic mines in Peru and Brazil, zinc smelters in both countries and produces zinc, gold, sulfuric acid and other metals and by-products for industrial markets.
Apart from a discounted PEG and P/E, Nexa currently has a Zacks Rank #1 and a Value Score of A. NEXA has a long-term historical growth rate of 49%.
ORIX: It provides diversified financial services across Japan, the United States and other global markets. ORIX operates across businesses including leasing, real estate, private equity, renewable energy, insurance, banking, consumer finance and aircraft, ship, investment and asset management services.
ORIX has a Zacks Rank #1 and a Value Score of A. IX also has an impressive five-year expected growth rate of 10.1%.
Why Haven't You Looked at Zacks' Top Stocks?
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 access their live picks without cost or obligation.
See Stocks Free >>
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2947344/4-peg-value-stocks-trading-at-attractive-discounts-in-july
Follow us on Twitter: https://www.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.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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.