Investing

3 Top Value Stocks Under 10-Times EPS Have a Tactical Edge for 2026

If you haven’t started your financial positioning and planning, its’ high time to get off your assets and get a move on. Tactical Bulls has been trying to help those who have been on the sidelines for how to plan for the year ahead. With Wall Street strategists looking for 10% or more gains in 2026 from the S&P 500, it seems that investors may have to look for undervalued assets or take more aggressive action for solid 2025-like returns.

Value investors flock to undervalued stocks and sectors that they feel are mispriced. The only problem is that there is a lack of catalysts for so-called “tactical” investors. This perhaps means that the only catalyst for driving “value” in the “tactical” sense is merely by getting the information to buyers.

BofA Securities has updated its top 10 growth and value stocks for investing strategies to include risk-on and less-risk trades. The portfolio is 20 stocks in total, but the 10 stocks from the value list for end of December includes 4 incredibly cheap stocks that could get more notice in 2026.

For the Value 10 screen, BofA generally has to believe that earnings over time will outperform consensus estimates. BofA also must have a “Buy” rating on the stock, and the outlook is generally less than 10 months rather than years (so maybe it is partly “tactical” after all).

Tactical Bulls has screened BofA’s value universe and there are three value stocks that stand out at less than 10-times earnings and with significant room to BofA’s 12-month price objective. Here you go!

Arch Capital Group Ltd. (NASDAQ: ACGL) valued at just 8.6-times trailing earnings. At $95.00, BofA has a $135 price objective for the next 12-months. Arch Capital Group had no dividend.

Allstate Corp. (NYSE: ALL) 6.8 valued at just 6.8-times trailing earnings. At $95.00, BofA has a $135 price objective for the next 12-months. At $211, BofA’s 12-month price objective is actually all the way up at $300 — with nearly 50% implied upside meaning “you are in good hands” after all (if the thesis works out that is). Allstate’s dividend yield is only about 1.9%.

Edison International (NYSE: EIX) is valued at just 777-times trailing earnings per share. It trades at $59.00 and BofA has a $70 price objective. Edison also has a 6% dividend yield since it is down so much from its peak.

Be advised that Synchrony Financial (NYSE: SYF) was also on the list of stocks under 10-times earnings. Unfortunately, despite a valuation of 8.6-times earnings, the $83.00 share price was too close to BofA’s price objective of $84.00. Synchrony has just a 1.2% dividend yield.

The analyst opinions and price targets noted in this reporting are all from BofA Securities. Tactical Bulls has no price targets or formal ratings on these stocks or their competitors. Be advised that analyst sometimes get their thesis wrong and company (or economic) fundamentals can change in an instant. No analyst reports ever come with assurances and they never include money-back guarantees if investors lose money.

Categories: Investing

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