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Buy 5 Top-Ranked Undervalued Stocks to Enhance Your Portfolio Returns
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Key Takeaways
SMCI and AVT project strong current-year revenue and earnings growth, supported by improving estimates.
ADM and ALL are advancing strategic initiatives while trading below the S&P 500 on forward P/E.
CNC benefits from pricing and optimization, with earnings expected to grow more than 100% this year.
Wall Street has maintained its northbound journey in 2026 albeit at a slow pace after an astonishing rally in the last three years. Several stocks have jumped this year. Here, we have five stocks that have surged year-to-date and are currently undervalued.
These stocks currently carry a top Zacks rank, indicating more price upside in the near term. The combination of a top Zacks rank and undervaluation should ensure a continued rally for these stocks in 2026. It is prudent to invest in these stocks now as they are unlikely to stay undervalued for a long time.
The chart below shows the price performance of our five picks year-to-date.
Image Source: Zacks Investment Research
Super Micro Computer Inc.
Super Micro Computer remains positioned to benefit from expanding artificial intelligence (AI) infrastructure demand, supported by rapid adoption of new GPU platforms, its modular Building Block architecture, liquid-cooling expertise and a broader DCBBS offering. SMCI’s strong customer partnership combined with record backlog, rising shipments and expanding product portfolio, positions the company to benefit in the long term.
Solid Estimate Revisions
Super Micro Computer has an expected revenue and earnings growth rate of 71.8% and 22%, respectively, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 30.3% over the last 30 days.
SMCI has an expected revenue and earnings growth rate of 19.6% and 18.7%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 42.2% over the last 30 days.
Attractive Valuation
The stock has a forward price/earnings (P/E) of 8.94X, compared with the industry’s P/E of 10.36X and the S&P 500’s P/E of 18.52X. It has a price/sale (P/S) of 0.67X, compared with the industry’s P/S of 5.32X and the S&P 500’s P/S of 3.09X. SMCI has a price/book (P/B) of 2.32X, significantly lower than the industry’s P/B of 16.38X and the S&P 500’s P/B of 3.71X.
Archer-Daniels-Midland Co.
Archer-Daniels-Midland has been benefiting from its strategic endeavors. ADM continues to advance its Optimize, Drive and Grow pillars, enhancing productivity, accelerating cost savings, expanding BioSolutions and leveraging digital tools to unlock margin opportunities and boost customer reach. ADM’s Human Nutrition unit is gaining from Flavors, Decatur East and emerging demand for natural ingredients.
Solid Estimate Revisions
Archer-Daniels-Midland has an expected revenue and earnings growth rate of 6.6% and 52.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 8.5% over the last 60 days.
ADM has an expected revenue and earnings growth rate of 1.4% and 3.5%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 8.4% over the last 60 days.
Attractive Valuation
The stock has a forward P/E of 16.20X, compared with the industry’s P/E of 13.48X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.50X, compared with the industry’s P/S of 0.91X and the S&P 500’s P/S of 3.09X. ADM has a P/B of 1.73X, compared with the industry’s P/B of 0.98X and the S&P 500’s P/B of 3.71X.
The Allstate Corp.
The Allstate has been benefiting from sustained premium growth, expanding market share, and stronger underwriting performance. ALL’s Property-Liability premiums earned rose 4.7% year over year in the first half of 2026, while policies in force increased 2.6%. Protection Services revenues grew 7.5%, driven by Allstate Protection Plans and Roadside. ALL’s Portfolio streamlining, Transformative Growth, and cost discipline are also strengthening profitability.
Solid Estimate Revisions
The Allstate has an expected revenue and earnings growth rate of 5% and 1.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.1% over the last seven days.
ALL has an expected revenue and earnings growth rate of 4% and -21%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1% over the last seven days.
Attractive Valuation
The stock has a forward P/E of 7.31X, compared with the industry’s P/E of 11.58X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.94X, compared with the industry’s P/S of 1.35X and the S&P 500’s P/S of 3.09X. ALL has a P/B of 2.07X, compared with the industry’s P/B of 1.68X and the S&P 500’s P/B of 3.71X.
Centene Corp.
Centene has established itself as a national leader in healthcare services. It has a well-diversified healthcare network that primarily provides a set of services to government-sponsored healthcare programs, while serving underinsured and uninsured individuals through member-focused services.
CNC continues to benefit from disciplined pricing, portfolio optimization, favorable Medicaid rate actions, and strong Medicare Prescription Drug Plan momentum. Strategic acquisitions, partnerships, and ongoing enterprise optimization initiatives are strengthening care delivery, improving operational efficiency, and supporting long-term margin restoration.
Solid Estimate Revisions
Centene has an expected revenue and earnings growth rate of 0.8% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.2% over the last 30 days.
CNC has an expected revenue and earnings growth rate of -1.9% and 9.2%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 2.9% over the last 30 days.
Attractive Valuation
The stock has a forward P/E of 13.70X, compared with the industry’s P/E of 23.44X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.16X, compared with the industry’s P/S of 0.30X and the S&P 500’s P/S of 3.09X. CNC has a P/B of 1.46X, compared with the industry’s P/B of 2.50X and the S&P 500’s P/B of 3.71X.
Avnet Inc.
Avnet enters fiscal 2027 with broad-based demand growth, longer lead times and higher backlog supporting further sales and earnings expansion. AVT’s mix of IP&E, embedded solutions, demand creation and supply-chain services should deepen customer ties and support operating leverage as volumes rise. Farnell’s recovery and tighter working-capital execution add to AVT’s upside, while lower leverage should gradually improve financial flexibility.
Solid Estimate Revisions
Avnet has an expected revenue and earnings growth rate of 23.5% and 84.3%, respectively, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 22.9% over the last 30 days.
AVT has an expected revenue and earnings growth rate of 4.4% and 7.4%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 19.9% over the last 30 days.
Attractive Valuation
The stock has a forward P/E of 8.81X, compared with the industry’s P/E of 15.49X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.27X, compared with the industry’s P/S of 0.50X and the S&P 500’s P/S of 3.09X. AVT has a P/B of 1.50X, compared with the industry’s P/B of 1.55X and the S&P 500’s P/B of 3.71X.
View the Zacks #1 Rank List
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Buy 5 Top-Ranked Undervalued Stocks to Enhance Your Portfolio Returns
Key Takeaways
Wall Street has maintained its northbound journey in 2026 albeit at a slow pace after an astonishing rally in the last three years. Several stocks have jumped this year. Here, we have five stocks that have surged year-to-date and are currently undervalued.
These stocks currently carry a top Zacks rank, indicating more price upside in the near term. The combination of a top Zacks rank and undervaluation should ensure a continued rally for these stocks in 2026. It is prudent to invest in these stocks now as they are unlikely to stay undervalued for a long time.
These stocks are: Super Micro Computer Inc. (SMCI - Free Report) , Archer-Daniels-Midland Co. (ADM - Free Report) , The Allstate Corp. (ALL - Free Report) , Centene Corp. (CNC - Free Report) and Avnet Inc. (AVT - Free Report) . Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year-to-date.
Image Source: Zacks Investment Research
Super Micro Computer Inc.
Super Micro Computer remains positioned to benefit from expanding artificial intelligence (AI) infrastructure demand, supported by rapid adoption of new GPU platforms, its modular Building Block architecture, liquid-cooling expertise and a broader DCBBS offering. SMCI’s strong customer partnership combined with record backlog, rising shipments and expanding product portfolio, positions the company to benefit in the long term.
Solid Estimate Revisions
Super Micro Computer has an expected revenue and earnings growth rate of 71.8% and 22%, respectively, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 30.3% over the last 30 days.
SMCI has an expected revenue and earnings growth rate of 19.6% and 18.7%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 42.2% over the last 30 days.
Attractive Valuation
The stock has a forward price/earnings (P/E) of 8.94X, compared with the industry’s P/E of 10.36X and the S&P 500’s P/E of 18.52X. It has a price/sale (P/S) of 0.67X, compared with the industry’s P/S of 5.32X and the S&P 500’s P/S of 3.09X. SMCI has a price/book (P/B) of 2.32X, significantly lower than the industry’s P/B of 16.38X and the S&P 500’s P/B of 3.71X.
Archer-Daniels-Midland Co.
Archer-Daniels-Midland has been benefiting from its strategic endeavors. ADM continues to advance its Optimize, Drive and Grow pillars, enhancing productivity, accelerating cost savings, expanding BioSolutions and leveraging digital tools to unlock margin opportunities and boost customer reach. ADM’s Human Nutrition unit is gaining from Flavors, Decatur East and emerging demand for natural ingredients.
Solid Estimate Revisions
Archer-Daniels-Midland has an expected revenue and earnings growth rate of 6.6% and 52.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 8.5% over the last 60 days.
ADM has an expected revenue and earnings growth rate of 1.4% and 3.5%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 8.4% over the last 60 days.
Attractive Valuation
The stock has a forward P/E of 16.20X, compared with the industry’s P/E of 13.48X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.50X, compared with the industry’s P/S of 0.91X and the S&P 500’s P/S of 3.09X. ADM has a P/B of 1.73X, compared with the industry’s P/B of 0.98X and the S&P 500’s P/B of 3.71X.
The Allstate Corp.
The Allstate has been benefiting from sustained premium growth, expanding market share, and stronger underwriting performance. ALL’s Property-Liability premiums earned rose 4.7% year over year in the first half of 2026, while policies in force increased 2.6%. Protection Services revenues grew 7.5%, driven by Allstate Protection Plans and Roadside. ALL’s Portfolio streamlining, Transformative Growth, and cost discipline are also strengthening profitability.
Solid Estimate Revisions
The Allstate has an expected revenue and earnings growth rate of 5% and 1.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.1% over the last seven days.
ALL has an expected revenue and earnings growth rate of 4% and -21%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1% over the last seven days.
Attractive Valuation
The stock has a forward P/E of 7.31X, compared with the industry’s P/E of 11.58X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.94X, compared with the industry’s P/S of 1.35X and the S&P 500’s P/S of 3.09X. ALL has a P/B of 2.07X, compared with the industry’s P/B of 1.68X and the S&P 500’s P/B of 3.71X.
Centene Corp.
Centene has established itself as a national leader in healthcare services. It has a well-diversified healthcare network that primarily provides a set of services to government-sponsored healthcare programs, while serving underinsured and uninsured individuals through member-focused services.
CNC continues to benefit from disciplined pricing, portfolio optimization, favorable Medicaid rate actions, and strong Medicare Prescription Drug Plan momentum. Strategic acquisitions, partnerships, and ongoing enterprise optimization initiatives are strengthening care delivery, improving operational efficiency, and supporting long-term margin restoration.
Solid Estimate Revisions
Centene has an expected revenue and earnings growth rate of 0.8% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.2% over the last 30 days.
CNC has an expected revenue and earnings growth rate of -1.9% and 9.2%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 2.9% over the last 30 days.
Attractive Valuation
The stock has a forward P/E of 13.70X, compared with the industry’s P/E of 23.44X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.16X, compared with the industry’s P/S of 0.30X and the S&P 500’s P/S of 3.09X. CNC has a P/B of 1.46X, compared with the industry’s P/B of 2.50X and the S&P 500’s P/B of 3.71X.
Avnet Inc.
Avnet enters fiscal 2027 with broad-based demand growth, longer lead times and higher backlog supporting further sales and earnings expansion. AVT’s mix of IP&E, embedded solutions, demand creation and supply-chain services should deepen customer ties and support operating leverage as volumes rise. Farnell’s recovery and tighter working-capital execution add to AVT’s upside, while lower leverage should gradually improve financial flexibility.
Solid Estimate Revisions
Avnet has an expected revenue and earnings growth rate of 23.5% and 84.3%, respectively, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 22.9% over the last 30 days.
AVT has an expected revenue and earnings growth rate of 4.4% and 7.4%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 19.9% over the last 30 days.
Attractive Valuation
The stock has a forward P/E of 8.81X, compared with the industry’s P/E of 15.49X and the S&P 500’s P/E of 18.52X. It has a P/S of 0.27X, compared with the industry’s P/S of 0.50X and the S&P 500’s P/S of 3.09X. AVT has a P/B of 1.50X, compared with the industry’s P/B of 1.55X and the S&P 500’s P/B of 3.71X.