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Welcome to Episode #459 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.
Are there any cheap stocks?
Many technology stocks, especially in the AI Revolution trade, have sold off in the last month. Additionally, energy companies remain cheap as their earnings rise on higher oil and refined product prices.
Screening for Top Ranked Cheap Stocks
This week, Tracey ran a premium Zacks screen called “Undervalued Zacks #1 Rank Stocks” to find top ranked cheap stocks.
It’s a basic screen which looks only for Zacks Rank #1 (Strong Buy) stocks with price-to-earnings (P/E) ratios under 20 and price-to-sales (P/S) ratios under 1.0.
A P/S ratio under 1.0 means you are getting the sales on sale. A P/S of 0.6 means an investor is paying $0.60 for every $1.00 of sales. That’s a deal.
Jabil is a partner with the world’s top brands offering engineering, supply chain, and manufacturing solutions worldwide.
On Sep 30, 2026, Jabil reported fiscal fourth quarter 2026 earnings and saw significant growth in AI infrastructure business. Analysts are bullish. The Zacks Consensus expects earnings to rise 34.5% in fiscal 2027.
Jabil is cheap. It trades with a P/S ratio of just 0.8. It’s a Zacks Rank #1 (Strong Buy).
Should Jabil be on your value investor short list?
Herc Holdings is a full-service equipment rental firm that operates 615 branches in the United States and Canada. Herc Holdings reported third quarter 2026 results on Oct 27, 2026, and had record equipment rental and revenue. It saw accelerating customer demand.
Shares of Herc Holdings are up 16% year-to-date but it’s still cheap. Herc Holdings traded with a P/S ratio of just 0.9 before it reported earnings and now it’s at 1.1. That’s still cheap.
Herc Holdings is a Zacks Rank #1 (Strong Buy).
Should a rental equipment company like Herc Holdings be on your value short list?
ZIM Integrated Shipping is a leading global container shipping company. In Feb 2025, it got a $4.2 billion buyout offer at $35 a share. The shares are currently trading around $29 so there is an arbitrage trade.
On Oct 6, 2026, ZIM Integrated Shipping raised full year guidance based on strong market demand and favorable momentum in freight rates. As a result, the 2026 Zacks Consensus Estimate jumped to $8.86 from $3.15 in the last 30 days. That’s earnings growth of 188%.
ZIM Integrated Shipping is dirt cheap. It has a forward P/E of just 3.3. A P/E under 10 usually means a company has deep value.
ZIM Integrated Shipping is a Zacks Rank #1 (Strong Buy).
Other shipping companies also have top Zacks Ranks and are cheap if you don’t want to deal with the ZIM buyout.
Should a shipping company like ZIM Integrated Shipping be on your value short list?
What Else Should You Know About Undervalued Strong Buy Stocks Right Now?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of JBL in Zacks Value Investor portfolio.]
Image: Bigstock
Screening for Undervalued Strong Buy Stocks
Key Takeaways
Welcome to Episode #459 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.
Are there any cheap stocks?
Many technology stocks, especially in the AI Revolution trade, have sold off in the last month. Additionally, energy companies remain cheap as their earnings rise on higher oil and refined product prices.
Screening for Top Ranked Cheap Stocks
This week, Tracey ran a premium Zacks screen called “Undervalued Zacks #1 Rank Stocks” to find top ranked cheap stocks.
It’s a basic screen which looks only for Zacks Rank #1 (Strong Buy) stocks with price-to-earnings (P/E) ratios under 20 and price-to-sales (P/S) ratios under 1.0.
A P/S ratio under 1.0 means you are getting the sales on sale. A P/S of 0.6 means an investor is paying $0.60 for every $1.00 of sales. That’s a deal.
This screen returned 34 stocks.
3 Undervalued Strong Buy Stocks
1. Jabil Inc. (JBL - Free Report)
Jabil is a partner with the world’s top brands offering engineering, supply chain, and manufacturing solutions worldwide.
On Sep 30, 2026, Jabil reported fiscal fourth quarter 2026 earnings and saw significant growth in AI infrastructure business. Analysts are bullish. The Zacks Consensus expects earnings to rise 34.5% in fiscal 2027.
Jabil is cheap. It trades with a P/S ratio of just 0.8. It’s a Zacks Rank #1 (Strong Buy).
Should Jabil be on your value investor short list?
2. Herc Holdings Inc. (HRI - Free Report)
Herc Holdings is a full-service equipment rental firm that operates 615 branches in the United States and Canada. Herc Holdings reported third quarter 2026 results on Oct 27, 2026, and had record equipment rental and revenue. It saw accelerating customer demand.
Shares of Herc Holdings are up 16% year-to-date but it’s still cheap. Herc Holdings traded with a P/S ratio of just 0.9 before it reported earnings and now it’s at 1.1. That’s still cheap.
Herc Holdings is a Zacks Rank #1 (Strong Buy).
Should a rental equipment company like Herc Holdings be on your value short list?
3. ZIM Integrated Shipping Services Ltd. (ZIM - Free Report)
ZIM Integrated Shipping is a leading global container shipping company. In Feb 2025, it got a $4.2 billion buyout offer at $35 a share. The shares are currently trading around $29 so there is an arbitrage trade.
On Oct 6, 2026, ZIM Integrated Shipping raised full year guidance based on strong market demand and favorable momentum in freight rates. As a result, the 2026 Zacks Consensus Estimate jumped to $8.86 from $3.15 in the last 30 days. That’s earnings growth of 188%.
ZIM Integrated Shipping is dirt cheap. It has a forward P/E of just 3.3. A P/E under 10 usually means a company has deep value.
ZIM Integrated Shipping is a Zacks Rank #1 (Strong Buy).
Other shipping companies also have top Zacks Ranks and are cheap if you don’t want to deal with the ZIM buyout.
Should a shipping company like ZIM Integrated Shipping be on your value short list?
What Else Should You Know About Undervalued Strong Buy Stocks Right Now?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of JBL in Zacks Value Investor portfolio.]