Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 stocks made the list for top value stocks in the Specialty Retail industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Specialty Retail Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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6 Undervalued Specialty Retail Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 6 undervalued stocks in the Specialty Retail industry for Tuesday, July 29, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Specialty Retail industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Genesco Inc.’s Value Grade

Value Grade:

Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories. The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands Group. The Journeys Group segment offers footwear and accessories for young men, women, and children through the Journeys, Journeys Kidz, and Little Burgundy retail chains, as well as through e-commerce operations. The Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear, as well as sells footwear through e-commerce. The Johnston & Murphy Group segment is involved in the retail and e-commerce operations; and wholesale distribution of footwear, apparel, and accessories primarily for men. The Genesco Brands Group segment markets footwear under the Levi's, Dockers, G.H. Bass, and other brands. The company provides its products through catalogs and e-commerce websites, including journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, schuh.ie, schuh.eu, littleburgundyshoes.com, johnstonmurphy.com, nashvilleshoewarehouse.com, and dockersshoes.com. It operates retail stores in the United States, Puerto Rico, Canada, the United Kingdom, and the Republic of Ireland primarily under the Journeys, Journeys Kidz, Schuh, Little Burgundy, and Johnston & Murphy brands. Genesco Inc. was incorporated in 1934 and is headquartered in Nashville, Tennessee.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Genesco Inc. has a Value Score of 95, which is considered to be undervalued.

When you look at Genesco Inc.’s price-to-sales ratio at 0.12 compared to the industry median at 0.37, this company has a lower price relative to revenue compared to its peers. This could make Genesco Inc.’s stock more attractive for value investors.

Now, let’s assess Genesco Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 11.6, when compared to the industry median of 13.1, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Genesco Inc.’s shareholder yield is higher than its industry median ratio of 0.20%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Genesco Inc.’s price-to-book ratio is lower than its industry median ratio of 1.69. This could make Genesco Inc. more attractive to investors looking for a new addition to their portfolio.

CarMax, Inc.’s Value Grade

Value Grade:

CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. The company operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services. The CarMax Auto Finance segment provides financing alternatives for retail customers across a range of credit spectrum and arrangements with various financial institutions. The company was founded in 1993 and is based in Richmond, Virginia.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

CarMax, Inc. has a Value Score of 62, which is considered to be undervalued.

CarMax, Inc.’s price-earnings ratio is 16.7 compared to the industry median at 19.7. This means that it has a lower price relative to its earnings compared to its peers. This makes CarMax, Inc. more attractive for value investors.

CarMax, Inc.’s price-to-book ratio is higher than its peers. This could make CarMax, Inc. less attractive for value investors when compared to the industry median at 1.69.

You can read more about CarMax, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Monro, Inc.’s Value Grade

Value Grade:

Monro, Inc. engages in the operation of retail tire and automotive repair stores in the United States. It offers replacement tires and tire related services; automotive undercar repair services; and routine maintenance services primarily to passenger cars, light trucks, and vans. The company also provides other products and services for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment. It operates its stores under the Monro Auto Service and Tire Centers, Tire Choice Auto Service Centers, Mr. Tire Auto Service Centers, Car-X Tire & Auto, Tire Warehouse Tires for Less, Ken Towery's Tire & Auto Care, Mountain View Tire & Auto Service, and Tire Barn Warehouse brand names. The company was founded in 1957 and is headquartered in Fairport, New York.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Monro, Inc. has a Value Score of 96, which is considered to be undervalued.

Monro, Inc.’s price-to-book ratio is higher than its peers. This could make Monro, Inc. less attractive for value investors when compared to the industry median at 1.69.

You can read more about Monro, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

The ODP Corporation’s Value Grade

Value Grade:

The ODP Corporation provides business products, services and supplies, and digital workplace technology solutions to small, medium, and enterprise-level businesses in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada. The company operates through three segments: ODP Business Solutions, Office Depot, and Veyer. The ODP Business Solutions segment offers adjacency products, including cleaning, janitorial, breakroom supplies, office furniture, and technology products; and copy and print services through sales force, catalogs, telesales, and internet websites. This segment also engages in the office supply distribution business. The Office Depot segment sells office supplies, technology products and solutions, business machines and related supplies, cleaning, breakroom and facilities products, personal protective equipment, and office furniture; and offers business services, including copying, printing, digital imaging, mailing, shipping, and technology support services through a fully integrated omni-channel platform of 869 Office Depot and OfficeMax retail stores, as well as officedepot.com. The Veyer segment engages in the supply chain, distribution, procurement, and global sourcing operation and purchasing, as well as global sourcing operation in Asia. The ODP Corporation was founded in 1986 and is headquartered in Boca Raton, Florida.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

The ODP Corporation has a Value Score of 97, which is considered to be undervalued.

The ODP Corporation’s price-earnings ratio is 12.7 compared to the industry median at 19.7. This means that it has a lower price relative to its earnings compared to its peers. This makes The ODP Corporation more attractive for value investors.

The ODP Corporation’s price-to-book ratio is higher than its peers. This could make The ODP Corporation less attractive for value investors when compared to the industry median at 1.69.

You can read more about The ODP Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Sleep Number Corporation’s Value Grade

Value Grade:

Sleep Number Corporation, together with its subsidiaries, designs, manufactures, markets, distributes, retails, and services sleep solutions in the United States. It offers smart beds and adjustable bases, pillows, sheets, and other bedding products. The company sells its products direct-to-consumer retail touch points, including stores, online, phone, and chat. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Sleep Number Corporation has a Value Score of 67, which is considered to be undervalued.

You can read more about Sleep Number Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Upbound Group, Inc.’s Value Grade

Value Grade:

Upbound Group, Inc. leases household durable goods to customers on a lease-to-own basis in the United States, Puerto Rico, and Mexico. It operates through four segments: Rent-A-Center, Acima, Mexico, and Franchising. The company's brands, such as Rent-A-Center and Acima that facilitate consumer transactions across a range of store-based and virtual channels. It also provides furniture comprising mattresses, wheel and tires, consumer electronics, appliances, tools, handbags, computers, smartphones, and accessories. In addition, the company offers merchandise on an installment sales basis; and the lease-to-own transaction to consumers who do not qualify for traditional financing, the lease to-own transaction through staffed or unstaffed kiosks located in third-party retailer's locations, and other virtual options. It operates retail installment sales stores under the Get It Now and Home Choice names; lease-to-own and franchised lease-to-own stores under the Rent-A-Centre, ColorTyme, and RimTyme names; and company-owned stores and e-commerce platform through rentacenter.com. The company was formerly known as Rent-A-Center, Inc. and changed its name to Upbound Group, Inc. in February 2023. Upbound Group, Inc. was founded in 1960 and is based in Plano, Texas.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Upbound Group, Inc. has a Value Score of 78, which is considered to be undervalued.

Upbound Group, Inc.’s price-earnings ratio is 11.8 compared to the industry median at 19.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Upbound Group, Inc. more attractive for value investors.

Upbound Group, Inc.’s price-to-book ratio is lower than its peers. This could make Upbound Group, Inc. more attractive for value investors when compared to the industry median at 1.69.

You can read more about Upbound Group, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Specialty Retail Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Specialty Retail stocks as well as other industrys.

Choosing Which of the 6 Best Specialty Retail Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Genesco Inc. stock has a Value Grade of A.
• CarMax, Inc. stock has a Value Grade of B.
• Monro, Inc. stock has a Value Grade of A.
• The ODP Corporation stock has a Value Grade of A.
• Sleep Number Corporation stock has a Value Grade of B.
• Upbound Group, Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 undervalued stocks in the Specialty Retail industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Specialty Retail Stocks

Want to learn more about Specialty Retail stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 6 Undervalued Specialty Retail Stocks for Tuesday, July 29
• 6 Undervalued Specialty Retail Stocks for Monday, July 28
• Which Is a Better Investment, American Eagle Outfitters, Inc. or CarMax, Inc. Stock?
• Why 1-800-FLOWERS.COM, Inc.’s (FLWS) Stock Is Up 5.41%

AAII Disclaimer

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