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Welcome to Episode #449 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.
For months, value investors have been mostly locked out of the AI Revolution stock trade. The stocks, including the semiconductors and memory stocks, soared over the last year and felt very stretched on valuation.
But over the last month, the AI stocks have seen a sharp sell-off. And even though they have rebounded off the “lows” of the last week of July, they are still on sale compared to just four weeks ago.
Are the AI Stocks True “Value” Stocks?
While classic value fundamentals like price-to-earnings (P/E) and price-to-sales (P/S) ratios might not be “cheap” on all the AI Revolution stocks, value investors shouldn’t disregard the entire AI trade because it’s not a classic value.
Even value investors should own some growth stocks. And you may still be able to find some AI stocks with low P/Es and PEG ratios.
With this plunge, now is the time to buy the AI stocks.
Sandisk hit new highs earlier in 2026. The stock is still up 426% year-to-date. But Sandisk has sold off 45% in just the last month. It’s on sale.
Sandisk is cheap. It’s a true value stock on a P/E basis. It trades with a forward P/E of just 6.6. A P/E ratio under 10 is usually considered to be dirt-cheap.
Sandisk will report fiscal fourth quarter 2026 earnings on Aug 5, 2026, after the close. Earnings are expected to jump 2,111% in fiscal 2026 to $66.11 from $2.99 last year. It’s incredible growth which is why the P/E is still so low even as the shares have soared.
It’s going to be a big earnings report. Tune in.
Is this a buying opportunity in Sandisk before the earnings report?
Micron shares soared to new all-time highs earlier this year. But it has now pulled back, losing 27.5% in the last month.
Micron is now cheaper on a P/E basis. It’s forward P/E is just 11.8. A P/E ratio under 15 usually indicates value.
Earnings are expected to jump 791% this year. Analysts have been raising earnings estimates over the last 60 days. Micron is a Zacks Rank #1 (Strong Buy).
Should value investors be buying Micron on this sell-off?
Vertiv provides key infrastructure inside data centers, including power and thermal management and the racks. It recently beat on earnings and raised full year earnings guidance.
Shares of Vertiv are down 26.7% in the last month, even after the earnings beat. But earnings are expected to rise 55.7% in 2026 and another 47.4% in 2027.
Vertiv now trades with a forward P/E of 34.8, which isn’t cheap. But it has a PEG ratio, which is the P/E divided by growth, of just 0.96. A PEG ratio under 1.0 usually indicates a company has both growth and value.
Vertiv is a Zacks #2 (Buy) stock.
Should Vertiv be on your short list on this weakness?
Comfort Systems provides cooling to the data centers. It is a large cap company with a market cap of $59.8 billion. Comfort Systems recently beat on earnings and raised guidance.
The analysts are bullish. Three estimates have been revised higher for 2026 in the last week. Comfort Systems is now expected to grow earnings by 57.5% this year.
Shares of Comfort Systems have fallen 11.7% in the last month. They are on sale, but not as deep of a sale as some of the others. Shares are still up 87.4% year-to-date.
Comfort Systems trades with a forward P/E of 37.3. It’s not cheap. But you are buying the tremendous earnings, and sales, growth.
Comfort Systems is a Zacks Rank #1 (Strong Buy) stock.
Should investors be accumulating shares of Comfort Systems on this dip?
Bloom Energy provides power to the data centers. It has a market cap of $58 billion.
Shares of Bloom Energy have fallen 31% over the last month but are still up 141% year-to-date.
Bloom Energy just reported record quarterly earnings as it beat on the Zacks Consensus. Earnings are expected to jump 176.3% in 2026 after gaining 171.4% in 2025.
It’s not cheap. Bloom Energy has a forward P/E of 98.4. That is an expensive stock. However, you’re buying the growth with Bloom. And after the pull-back in the last month, you’re getting it on sale.
Bloom Energy is also a Zacks Rank #1 (Strong Buy) stock.
Is Bloom Energy a deal after this sell-off?
What Else Should You Know About Buying the AI Stocks on the Dip?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of VRT in the Zacks Value Investor portfolio and also in her own personal portfolio.]
View the Zacks #1 Rank List
Image: Bigstock
Buy the Dip in the AI Stocks
Key Takeaways
Welcome to Episode #449 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.
For months, value investors have been mostly locked out of the AI Revolution stock trade. The stocks, including the semiconductors and memory stocks, soared over the last year and felt very stretched on valuation.
But over the last month, the AI stocks have seen a sharp sell-off. And even though they have rebounded off the “lows” of the last week of July, they are still on sale compared to just four weeks ago.
Are the AI Stocks True “Value” Stocks?
While classic value fundamentals like price-to-earnings (P/E) and price-to-sales (P/S) ratios might not be “cheap” on all the AI Revolution stocks, value investors shouldn’t disregard the entire AI trade because it’s not a classic value.
Even value investors should own some growth stocks. And you may still be able to find some AI stocks with low P/Es and PEG ratios.
With this plunge, now is the time to buy the AI stocks.
5 AI Revolution Stocks for Your Short List
1. Sandisk Corp. (SNDK - Free Report)
Sandisk hit new highs earlier in 2026. The stock is still up 426% year-to-date. But Sandisk has sold off 45% in just the last month. It’s on sale.
Sandisk is cheap. It’s a true value stock on a P/E basis. It trades with a forward P/E of just 6.6. A P/E ratio under 10 is usually considered to be dirt-cheap.
Sandisk will report fiscal fourth quarter 2026 earnings on Aug 5, 2026, after the close. Earnings are expected to jump 2,111% in fiscal 2026 to $66.11 from $2.99 last year. It’s incredible growth which is why the P/E is still so low even as the shares have soared.
It’s going to be a big earnings report. Tune in.
Is this a buying opportunity in Sandisk before the earnings report?
2. Micron Technology, Inc. (MU - Free Report)
Micron shares soared to new all-time highs earlier this year. But it has now pulled back, losing 27.5% in the last month.
Micron is now cheaper on a P/E basis. It’s forward P/E is just 11.8. A P/E ratio under 15 usually indicates value.
Earnings are expected to jump 791% this year. Analysts have been raising earnings estimates over the last 60 days. Micron is a Zacks Rank #1 (Strong Buy).
Should value investors be buying Micron on this sell-off?
3. Vertiv Holdings Co. (VRT - Free Report)
Vertiv provides key infrastructure inside data centers, including power and thermal management and the racks. It recently beat on earnings and raised full year earnings guidance.
Shares of Vertiv are down 26.7% in the last month, even after the earnings beat. But earnings are expected to rise 55.7% in 2026 and another 47.4% in 2027.
Vertiv now trades with a forward P/E of 34.8, which isn’t cheap. But it has a PEG ratio, which is the P/E divided by growth, of just 0.96. A PEG ratio under 1.0 usually indicates a company has both growth and value.
Vertiv is a Zacks #2 (Buy) stock.
Should Vertiv be on your short list on this weakness?
4. Comfort Systems USA, Inc. (FIX - Free Report)
Comfort Systems provides cooling to the data centers. It is a large cap company with a market cap of $59.8 billion. Comfort Systems recently beat on earnings and raised guidance.
The analysts are bullish. Three estimates have been revised higher for 2026 in the last week. Comfort Systems is now expected to grow earnings by 57.5% this year.
Shares of Comfort Systems have fallen 11.7% in the last month. They are on sale, but not as deep of a sale as some of the others. Shares are still up 87.4% year-to-date.
Comfort Systems trades with a forward P/E of 37.3. It’s not cheap. But you are buying the tremendous earnings, and sales, growth.
Comfort Systems is a Zacks Rank #1 (Strong Buy) stock.
Should investors be accumulating shares of Comfort Systems on this dip?
5. Bloom Energy Corp. (BE - Free Report)
Bloom Energy provides power to the data centers. It has a market cap of $58 billion.
Shares of Bloom Energy have fallen 31% over the last month but are still up 141% year-to-date.
Bloom Energy just reported record quarterly earnings as it beat on the Zacks Consensus. Earnings are expected to jump 176.3% in 2026 after gaining 171.4% in 2025.
It’s not cheap. Bloom Energy has a forward P/E of 98.4. That is an expensive stock. However, you’re buying the growth with Bloom. And after the pull-back in the last month, you’re getting it on sale.
Bloom Energy is also a Zacks Rank #1 (Strong Buy) stock.
Is Bloom Energy a deal after this sell-off?
What Else Should You Know About Buying the AI Stocks on the Dip?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of VRT in the Zacks Value Investor portfolio and also in her own personal portfolio.]