Back to top

Image: Bigstock

Zacks Value Trader Highlights: ADM, Delek and Sanmina

Read MoreHide Full Article

For Immediate Release

Chicago, IL – September 21, 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/2992313/3-strong-buy-undervalued-stocks-right-now)

3 Strong Buy Undervalued Stocks Right Now

  • (1:00) - Where Should You Be Looking For Cheap Stocks Right Now?
  • (6:45) - Tracey’s Top Stock Picks For Your Watchlist 
  • (33:30) - Episode roundup: ADM, DK, SMCI, SANM
  • Podcast@zacks.com

Welcome to Episode #454 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 find some more high-quality value stocks. With the recent sell-off in the AI Revolution stocks, even those high-growth names have gotten cheaper.

But are any of them truly "undervalued" at this time?

Use the Zacks Rank to Find Top Stocks

Anyone can screen for cheap stocks. But how do you find the highest quality companies?

Use the Zacks Rank. The Rank is a short-term recommendation of 1 to 3 months which is based on changes to analyst earnings estimates. When the analysts are all raising their estimates on a company, and none are cutting estimates, it usually means something good is going on at that company.

The Zacks Rank can change daily, as analyst estimates are constantly changing.

At any given time, there are between 200 and 250 companies with the top Zacks Rank of #1, which is a strong buy. This is an exclusive group of companies.

Screening for Top Undervalued Stocks

To find the best undervalued stocks, you should start with the top Zacks Rank of #1 (Strong Buy).

This screen looks for value using a price-to-earnings (P/E) ratio under 20 and a price-to-sales (P/S) ratio under 1.0. A P/S ratio of 0.5 indicates you are paying $0.50 for every $1.00 worth of sales. That's a deal.

It's difficult to get cheap earnings and sales alongside a top Zacks Rank of Strong Buy.

This screen returned 50 stocks.

3 Strong Buy Undervalued Stocks Right Now

1. ADM (ADM - Free Report)

ADM is a global agricultural supply chain manager and processor. In business for over 120 years, it has called itself the "supermarket to the world."

Earnings are expected to jump 52.2% this year. Shares of ADM are up 48% year-to-date but it's still cheap. ADM trades with a P/S ratio of just 0.5. That means investors are paying $0.50 for every $1.00 worth of ADM sales.

ADM is shareholder friendly. It has paid an uninterrupted quarterly dividend for 94 years. The dividend is currently $2.08 per share, with a yield of 2.4%.

ADM is a Zacks Rank #1 (Strong Buy) stock.

Should value investors have ADM on their short list? 

2. Delek US Holdings, Inc. (DK - Free Report)

Delek US Holdings is a downstream energy company with assets in petroleum refining, logistics, pipelines, and renewable fuels. It has a refining capacity of about 302,000 barrels a day from operations in Texas, Arkansas and Louisiana.

Earnings have been soaring in the refining industry due to record high crack spreads. 3 estimates were raised on Delek US Holdings in the last week, pushing the Zacks Consensus up to $15.83 from $11.93. Analysts expect Delek to grow earnings by 139.8% this year.

Shares of Delek US Holdings have soared 164% year-to-date to new highs. But it's still cheap as earnings soar. Delek trades with a forward P/E of just 5.3. A P/E under 10 is considered to be dirt cheap.

Delek is a rare Zacks #1 Rank (Strong Buy) stock that also has Styles Scores of A across the board for Value, Growth, and Momentum.

With Delek trading at new highs, is it a stock for traders and not investors?

3. Sanmina Corp. (SANM - Free Report)

Sanmina is a global integrated manufacturing solutions company. It's capturing some of the AI Revolution spend in the data centers. Earnings are expected to jump 100% this year to $12.11 from $6.04 in 2025.

Shares of Sanmina have jumped 33.5% year-to-date but the company remains undervalued. Sanmina has a P/S ratio of 0.8. That means investors are paying just $0.80 for every $1.00 worth of sales.

Sanmina is a Zacks Rank #1 (Strong Buy).

Should value investors buy the AI stocks like Sanmina right now?

What Else Should You Know About Undervalued Stocks? 

Tune into this week's podcast to find out and to get an extra bonus stock. 

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.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

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/performancefor information about the performance numbers displayed in this press release.

Published in