Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 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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5 Undervalued Specialty Retail Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Specialty Retail industry for Wednesday, September 17, 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.

Arko Corp.’s Value Grade

Value Grade:

Arko Corp., through its subsidiary, operates a chain of convenience stores in the United States. It operates through Retail, Wholesale, Fleet Fueling, and GPMP segments. The Retail segment engages in the operation of retail stores that sells fuel and merchandise, as well as cold and hot foodservice, beverages, cigarettes and other tobacco products, candy, salty snacks, grocery, beer and general merchandise to retail consumers. The Wholesale segment supplies fuel to dealers, sub-wholesalers, and bulk and spot purchasers. The Fleet Fueling segment operates proprietary and third-party cardlock, and sells fuel using proprietary fuel cards. The GPMP segment is involved in the wholesale distribution of fuel to the retail and wholesale segments. The company 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.

Arko Corp. has a Value Score of 65, which is considered to be undervalued.

When you look at Arko Corp.’s price-to-sales ratio at 0.07 compared to the industry median at 0.40, this company has a lower price relative to revenue compared to its peers. This could make Arko Corp.’s stock more attractive for value investors.

Arko Corp.’s price-earnings ratio is 64.30 compared to the industry median at 20.40. This means it has a higher share price relative to earnings compared to its peers. This could make Arko Corp. less attractive for value investors.

Now, let’s assess Arko Corp.’s EV/EBITDA ratio, also known as enterprise multiple. At 13.8, when compared to the industry median of 13.7, the company may be considered overvalued 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. Arko Corp.’s shareholder yield is higher than its industry median ratio of 1.10%. 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. Arko Corp.’s price-to-book ratio is higher than its industry median ratio of 2.09. This could make Arko Corp. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Arko Corp.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Arko Corp.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 26.50. This could make Arko Corp. more attractive because the lower P/FCF ratio indicates that Arko Corp. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

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 89, which is considered to be undervalued.

Genesco Inc.’s price-to-book ratio is higher than its peers. This could make Genesco Inc. less attractive for value investors when compared to the industry median at 2.09.

You can read more about Genesco 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.

Lithia Motors, Inc.’s Value Grade

Value Grade:

Lithia Motors, Inc. operates as an automotive retailer in the United States, the United Kingdom, and Canada. The company operates in two segments, Vehicle Operations and Financing Operations. It offers a range of products and services fulfilling the entire vehicle ownership lifecycle, including new and used vehicles, financing and insurance products, and aftersales automotive repair and maintenance services. The company provides its products and services through a network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon.

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.

Lithia Motors, Inc. has a Value Score of 83, which is considered to be undervalued.

Lithia Motors, Inc.’s price-earnings ratio is 9.9 compared to the industry median at 20.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Lithia Motors, Inc. more attractive for value investors.

Lithia Motors, Inc.’s price-to-book ratio is higher than its peers. This could make Lithia Motors, Inc. less attractive for value investors when compared to the industry median at 2.09.

You can read more about Lithia Motors, 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.

Penske Automotive Group, Inc.’s Value Grade

Value Grade:

Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck dealerships worldwide. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates dealerships under franchise agreements with various automotive manufacturers and distributors. The company is also involved in the sale of new and used vehicles, maintenance and repair services, sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, replacement and aftermarket automotive products, collision repair services, and wholesale of parts. In addition, it operates a heavy and medium duty truck dealership, which offers Freightliner and Western Star branded trucks, as well as offers a range of used trucks. Further, it imports and distributes Western Star heavy-duty trucks, MAN heavy and medium duty trucks and buses, and Dennis Eagle refuse collection vehicles with associated parts, as well as distributes diesel and gas engines, and power systems. The company was incorporated in 1990 and is headquartered in Bloomfield Hills, Michigan. Penske Automotive Group, Inc. is a subsidiary of Penske Corporation, Inc.

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.

Penske Automotive Group, Inc. has a Value Score of 69, which is considered to be undervalued.

Penske Automotive Group, Inc.’s price-earnings ratio is 12.4 compared to the industry median at 20.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Penske Automotive Group, Inc. more attractive for value investors.

Penske Automotive Group, Inc.’s price-to-book ratio is lower than its peers. This could make Penske Automotive Group, Inc. fairly attractive for value investors when compared to the industry median at 2.09.

You can read more about Penske Automotive 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.

ATRenew Inc.’s Value Grade

Value Grade:

ATRenew Inc., together with its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People’s Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras; and vintage bags, watches, liquor, gold, and various household goods through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. ATRenew Inc. was formerly known as AiHuiShou International Co. Ltd. and changed its name to ATRenew Inc. November 2021. The company was incorporated in 2011 and is headquartered in Shanghai, the People’s Republic of China.

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.

ATRenew Inc. has a Value Score of 81, which is considered to be undervalued.

ATRenew Inc.’s price-earnings ratio is 59.2 compared to the industry median at 20.4. This means that it has a higher price relative to its earnings compared to its peers. This makes ATRenew Inc. less attractive for value investors.

ATRenew Inc.’s price-to-book ratio is higher than its peers. This could make ATRenew Inc. less attractive for value investors when compared to the industry median at 2.09.

You can read more about ATRenew 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 5 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.

• Arko Corp. stock has a Value Grade of B.
• Genesco Inc. stock has a Value Grade of A.
• Lithia Motors, Inc. stock has a Value Grade of A.
• Penske Automotive Group, Inc. stock has a Value Grade of B.
• ATRenew Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 5 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.

• 5 Undervalued Specialty Retail Stocks for Wednesday, September 17
• 7 Undervalued Specialty Retail Stocks for Tuesday, September 16
• Why Bed Bath & Beyond, Inc.’s (BBBY) Stock Is Down 5.36%
• Why Bed Bath & Beyond, Inc.’s (BBBY) Stock Is Down 5.36%

AAII Disclaimer

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