3 Strong Buy Value Stocks To Add To Your Portfolio

Here’s something you might not be aware of — there’s a huge disparity going on right now in terms of how investing styles have been performing since the start of the year.

Or, in plain English, value stocks are doing pretty well — growth stocks, not so much. Since the start of the year, the S&P 500 has lost 0.30% in value. The S&P 500 Growth index has lost 3.01% in value. And finally, the S&P Value index has … risen in value by 3.22%.

That’s a pretty significant disparity — and with sky-high valuations, the shift toward equities that have stronger fundamentals won’t be a short-term trend.

The problems with value investing are many, and they are well known. Plenty of stocks seem “undervalued” but are just plain bad. Though important, a stock’s valuation is just part of the picture. To identify the best opportunities, you need a way to consider all the fundamentals and contrast stocks with each other quickly and efficiently. Thankfully, the way to do that is simple — just turn to our…

Value Stock Strategy

Our quant rating system uses a framework made up of 115 different financial metrics to evaluate 4,600 stocks each day. Those insights come together into a straightforward, user-friendly metric — a stock’s Zen Rating.

Only the top 5% of stocks are given a Zen Rating of A, equivalent to a Strong Buy rating. And while that’s a good start, it still leaves you with roughly 230 stocks to analyze on any given day. Thankfully, it’s easy to narrow the search down even further — all you have to do is take a look at one of our exclusive Zen Strategies.

There are 11 strategies in total. Each is a portfolio consisting of just 7 carefully selected stocks. With recent developments in mind, today we’ll be taking a look at the strategy that performed best thus far in 2026 — our Buy the Dip strategy.

Since the start of the year, this portfolio has already delivered a 7.54% return. Like the rest of our strategies, it is constantly being recalibrated — and today you’ll get to see 2 promising stocks that were recently added to this portfolio.

Nutex (NUTX)

Our first entry, Nutex, operates micro-hospitals and standalone emergency rooms. NUTX has a Zen Rating of A — it ranks in the top 4% of all the stocks that we track, and it’s the 3rd highest-rated stock in the Health Information Service industry.

Unsurprisingly, Value is NUTX’s strongest suit. In this category, it ranks in the 99th percentile, thanks to an extremely low P/E ratio of just 4.77x. On top of that, it has a pretty healthy balance sheet, which secured a spot in the top 6% when it comes to Financials.

While the Growth rating is only a C, Nutex shares rank in the top 21% in terms of this Component Grade rating. The real drawback is Safety, which earns an F grade — so if you’re uncomfortable with volatility, this might not be the stock for you.

With that being said, that volatility is a double-edged sword — NUTX has lost 28.99% in value in the past 3 months, so it’s currently trading at a pretty appealing discount — if you can weather a bumpy ride, it might be best to lock in that discount pretty soon.

Terex (TEX)

TEX, our second entry, ranks in the top 14% of stocks and has a Zen Rating of B. Terex makes heavy machinery used in infrastructure construction and agriculture.

Terex’s valuation is hard to beat. The stock’s P/E ratio sits at just 20.29x, while the price to earnings growth (PEG) ratio is at 0.63x, indicating that it is significantly undervalued. In terms of the Value Component Grade rating, just like our previous entry, TEX ranks in the top 1% of all stocks. The growth prospects, while not stellar, are fairly above average — as Terex shares rank in the top 22% of equities in terms of the Growth Component Grade rating.

The biggest drawback here is the Sentiment rating — an F. Analysts are generally skeptical, and the average price target implies a -3.43% downside. However, that’s far from a universal view — Truist Securities Jamie Cook, who ranks in the top 3% of all analysts in terms of actual stock picking performance, recently maintained a Strong Buy rating with a Street-high price target of $82, which implies a 20.29% upside.

However, that attractive price might soon be a thing of the past — TEX has seen a 15.5% price increase in the past 30 days, so if it has caught your eye, it might be best to act sooner rather than later.

KBR (KBR)

The final business we’ll be taking a look at today is KBR, a major government services and engineering contractor. KBR shares have a Zen Rating of B, and the Engineering & Construction industry, which they’re a part of, has an Industry Rating of A.

First things first — the valuation. KBR is currently trading at a PE of 14.68x and a PEG ratio of just 0.62x, indicating it is significantly undervalued. Like our other picks, it ranks in the top 1% of stocks for Value. At the moment, 5 analysts track the stock — the average price target implies an 18.47% upside, so it also falls under the top 30% of stocks in terms of Sentiment.

Where it differs from our previous picks is Safety. This is a business that relies on stable, long-term contracts. It ranks in the top 10% when it comes to the Sentiment Component Grade rating, and currently boasts a Beta of just 0.76. It also ranks in the top 21% in terms of Financials, so the balance sheet is pretty solid. Finally, while it only gets a C for Growth, earnings are estimated to grow by 23.66% per year, which is far from shabby.

KBR is also on a rather long earnings beat streak, and the next earnings call is due February 26. It could prove to be a catalyst for an upward price move. Beyond that, the company will spin off one of its divisions into a standalone business later this year — and early analyst commentary on the move has been quite positive.

Interested In More Great Stock Picks? 

The 3 stocks highlighted above are just a fraction of what you get from our proven Value Stock strategy. 

That’s because each day our system recalibrates — and Zen Strategies members get access to the top 7 value stocks based on 115 different parameters that point to outperformance. 

See all Top 7 Value stocks here >

However, value stocks aren’t your cup of tea. Perhaps you would like to see all 11 of our market beating strategies including Growth, Momentum, Technology, and our coveted AI Factor model. 

Each featuring the top 7 stocks.

Each featuring tremendous performance

We spell it all out in this timely presentation below that lives up to its name:

10 Minutes a Month to Beat the Market > 

What to Do Next?

• 77 Best Stocks NOW! >
• See All “A” Rated Stocks with +32.52% Average Annual Return >
• 2 New Stocks to Buy from Steve Reitmeister >

Want to get in touch? Email us at news@wallstreetzen.com.