3 Undervalued Stock Winners for 2026

The year is young, and it’s still not clear what the dominant trends will be.

But the idea of value investing never goes out of style — so let’s focus on that concept. 

Find and invest in securities that appear undervalued, then wait for the price to rise. It is at once simple and complex when you get into the details.

This is a great time to consider what’s a good value for your portfolio, though it’s good to have a starting point, and it’s absolutely vital to pick out the best stocks from the rest. Our Zen Ratings system can help with that (A-rated stocks have an average annual return of +32.52%). Not only that, but our Component Grades also indicate which stocks have a superior value proposition. 

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Here are three stocks that have an A Zen Rating, a Component Grade of A for Value, and a negative Graham Fair Value percentage difference:

1. Ironwood Pharmaceuticals (NASDAQ: IRWD)

IRWD has had an absolutely meteoric last 6 months, as seen below. Though why? Part of it is demand for Linzess (an irritable bowel syndrome treatment medication) which isn’t slowing down. Earnings and revenue are up as a result, with strong recent reporting.

However, despite IRWD making great strides in recent months, it’s still a value pick with a Component Grade of A for value. There’s still potentially more to be found here in the advent of future growth, though investors will want to watch what IRWD is also developing on top of its key drugs, how demand looks over the coming months, and if IRWD is able to capitalize on success.

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2. European Wax Center (NASDAQ: EWCZ)

Certainly not the largest stock by market cap you’ll see as a value proposition, but a strong opportunity for the right investor. EWCZ operates in both the out-of-home body waxing space and offers pre- and post-wax products for purchase. Based in Texas, the company has had a rough year for its share price, but there’s another story here: its rapid expansion and focus on acquiring new clients, which investors will want to follow up on occasionally.

Regarding the Component Grades, the company is below average for Momentum but earns an A for Sentiment. This indicates that things may not turn around soon, but key stakeholders and investors still believe in the stock. Whether you’re looking for your value proposition now or later, EWCZ might be one to look at.

3. Bioventus (NASDAQ: BVS)

A medical device company focusing on devices and technologies that improve the body’s natural healing processes, BVS looks to be not only strong when it comes to value but other considerations as well. Reviewing the Component Grades below, the stock remains a relatively safer option for a value and growth-oriented pick, and analysts give it a positive outlook.

We covered BVS as a stock to buy the dip on in late October, and while that level of dip has now passed as of this writing, it remains a top medical device stock and a top stock overall. 

Do you want more tools and easy access to find potentially undervalued stocks? Then WallStreetZen Premium is just what you need. With all the fundamental information you need, an unlimited watchlist, and access to Premium Stock Ideas pages, you’ll be able to feel more confident with your portfolio decisions.

Though this can still be a fair bit to track, and you might want a more guided approach to investing. If this sounds best for you, then you’ll want to look into Zen Investor. With it, you’ll get regular monthly commentary from our own Steve Reitmeister as well as access to a monthly live webinar. You’ll also receive access to a carefully considered model portfolio that uses Reitmeister’s 40+ years of investing experience and the Zen Ratings system.

What to Do Next?

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