Oil prices surge to two-week winning streak as Iran supply fears grip markets
Many technology stocks, especially in software and the Internet, have sold off to start 2026. But those stocks may not be the deals you think they are.
What companies are cheap and have growth, along with the highest Zacks Ranks?
Screening for Value Stocks with Growth
Zacks.com has a premium screen that uses the PEG ratio to find stocks that have both growth and value. The PEG ratio is the price-to-earnings (P/E) ratio divided by growth.
A PEG ratio under 1.0 usually indicates a company has both growth and value. This is a rare combination.
The screen also looks for Zacks #1 Rank (Strong Buy) and #2 (Buy) stocks. These are the top Zacks Ranks.
Additionally, it looks for the current average broker recommendation of 2.5 or less.
Running this screen, it returned 20 stocks.
3 Cheap Old Economy Stocks to Buy Now
1. Barclays PLC (BCS)
Barclays (NYSE:BCS) is a large UK bank with a market cap of $90.7 billion. It operates in corporate banking, private banking and wealth management, investment banking, and US consumer banking.
In 2025, Barclays increased profit by 16%. It plans to return greater than 15 billion pounds of capital to shareholders between 2026 and 2028 through dividends and buybacks.
Barclays is cheap. It has a price-to-book (P/B) ratio of 0.9. Bank analysts say to buy banks with a P/B ratio is 1.0 and to sell at 2.0. Barclays is a Zacks Rank #2 (Buy).
Should a UK bank like Barclays be on your short list?
2. Korea Electric Power Corp. (KEP)
Korea Electric Power (NYSE:KEP) is a large-cap company with a market cap of $27.3 billion. It maintains power plants, including nuclear and thermal. Korea Electric Power has 66 domestic and 11 overseas offices.
Korea Electric Power is up 27.4% year-to-date and is near 5-year highs. It has a P/E of just 3.4. A P/E under 10 is thought to be extremely cheap.
Korea Electric Power is also a Zacks Rank #2 (Buy) stock.
Should value investors take a chance on a South Korean power services company like Korea Electric Power?
3. Deutsche Bank (DB)
Deutsche Bank (NYSE:DB) is a global German bank with a market cap of $71.8 billion. In 2025, it saw a record full-year and fourth-quarter profit. Net profit for the year doubled.
Deutsche Bank is shareholder-friendly. It expects to raise the dividend by 50% year-over-year at the May meeting. The current dividend is yielding 3.1%.
Shares of Deutsche Bank are up 86.6% over the last year, but it’s still cheap. It has a P/B ratio of 0.8. A P/B under 1.0 for a bank means it’s a deep value. Deutsche Bank also has growth. Earnings are expected to rise 18.9% in 2026.
Deutsche Bank is a Zacks Rank #2 (Buy) stock.
Should value investors have a German bank like Deutsche Bank on their short list?
What Else Should You Know About the Value Stocks with Growth?
Tune into this week’s podcast to find out.
- (0:35) - Using The PEG To Find Strong Value Investments: Stock Screen Criteria
- (9:15) - Tracey’s Top Picks For Your Watchlist Right Now
- (26:30) - Episode Roundup: BCS, KEP, DB, CAT
[In full disclosure, Tracey owns EXPE in Zacks Value Investor portfolio.]
This article originally published on Zacks Investment Research (zacks.com).
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