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Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Consumer Staples Distribution & 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 Consumer Staples Distribution & 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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3 Undervalued Consumer Staples Distribution & Retail Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Consumer Staples Distribution & Retail industry for Thursday, February 12, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Consumer Staples Distribution & Retail industry median.

Company	Ticker	Price/Sales	Price/Earnings	EV/EBITDA	Shareholder Yield	Price/Book Value	Price/Free Cash Flow	Value Grade
The Andersons, Inc.	ANDE	0.20	32.4	15.8	1.4%	1.97	11.4	C
Natural Grocers by Vitamin Cottage, Inc.	NGVC	0.42	12.0	11.1	1.9%	2.59	18.3	B
Target Corporation	TGT	0.50	13.9	9.9	5.4%	3.35	54.3	B

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.

The Andersons, Inc.’s Value Grade

Value Grade:

Metric	Score	ANDE	Industry Median
Price/Sales	9	0.20	0.42
Price/Earnings	71	32.4	23.5
EV/EBITDA	63	15.8	13.4
Shareholder Yield	34	1.4%	0.4%
Price/Book Value	50	1.97	2.96
Price/Free Cash Flow	27	11.4	17.7

The Andersons, Inc. operates in trade, renewables, and nutrient and industrial sectors in the United States, Canada, Mexico, Egypt, Switzerland, and internationally. It operates through three segments: Trade, Renewables, and Nutrient & Industrial. The Trade segment operates grain elevators; stores commodities; and provides grain marketing, risk management, and origination services, as well as sells commodities, such as corn, soybeans, wheat, oats, ethanol, and corn oil. This segment also engages in the commodity merchandising business, as well as offers logistics for physical commodities, such as whole grains, grain products, feed ingredients, domestic fuel products, and other agricultural commodities. The Renewables segment produces, purchases, and sells ethanol, and co-products; and offers facility operations, risk management, and marketing services to the ethanol plants it invests in and operates. The Nutrient & Industrial segment manufactures, distributes, and retails agricultural and related plant nutrients, liquid industrial products, corncob-based products, pelleted lime and gypsum products, turf fertilizer, pesticide, and herbicide products; crop nutrients, crop protection chemicals, and seed products; and provides application and agronomic services to commercial and family farmers. This segment also manufactures and distributes professional lawn care products for golf course and professional turf care markets; and produces corncob-based products for laboratory animal bedding and private-label cat litter, as well as absorbents, blast cleaners, carriers, and polishers. In addition, this segment offers fertilizer and weed, and pest control products; dry and liquid agricultural nutrients, pelleted lime, gypsum, and soil amendments; micronutrients; and industrial products comprising nitrogen reagents, calcium nitrate, deicers, and dust abatement products. The Andersons, Inc. was founded in 1947 and is based in Maumee, Ohio.

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 Andersons, Inc. has a Value Score of 60, which is considered to be fairly valued.

When you look at The Andersons, Inc.’s price-to-sales ratio at 0.20 compared to the industry median at 0.42, this company has a lower price relative to revenue compared to its peers. This could make The Andersons, Inc.’s stock more attractive for value investors.

The Andersons, Inc.’s price-earnings ratio is 32.40 compared to the industry median at 23.50. This means it has a higher share price relative to earnings compared to its peers. This could make The Andersons, Inc. less attractive for value investors.

Now, let’s assess The Andersons, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 15.8, when compared to the industry median of 13.4, 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. The Andersons, Inc.’s shareholder yield is higher than its industry median ratio of 0.40%. 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. The Andersons, Inc.’s price-to-book ratio is lower than its industry median ratio of 2.96. This could make The Andersons, Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at The Andersons, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. The Andersons, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 17.70. This could make The Andersons, Inc. more attractive because the lower P/FCF ratio indicates that The Andersons, Inc. is fairly valued. 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.

Natural Grocers by Vitamin Cottage, Inc.’s Value Grade

Value Grade:

Metric	Score	NGVC	Industry Median
Price/Sales	17	0.42	0.42
Price/Earnings	22	12.0	23.5
EV/EBITDA	41	11.1	13.4
Shareholder Yield	32	1.9%	0.4%
Price/Book Value	59	2.59	2.96
Price/Free Cash Flow	45	18.3	17.7

Natural Grocers by Vitamin Cottage, Inc., together with its subsidiaries, retails natural and organic groceries, and dietary supplements in the United States. The company’s stores offer natural and organic grocery products, such as organic produce; private label repackaged bulk products, including dried fruits, nuts, grains, granolas, teas, herbs, and spices, as well as peanut and almond butters; private label products comprising grocery staples, household products, bulk foods, and vitamins and dietary supplements, as well as organic eggs, organic flavored coffee, and organic mustard; dry, frozen, and canned groceries; meat and seafood products; dairy products, dairy substitutes, and eggs; prepared foods; bread and baked products; beverages; and beer, wine, and hard cider products. Its stores also provide name-brand supplements, as well as private label dietary supplements; body care products consisting of cosmetics, skin care, hair care, fragrance, and personal care products containing natural and organic ingredients; pet care and food products; household and general merchandise, including cleaning supplies, paper products, and dish and laundry soaps, as well as other common household products, such as diapers; and books and handouts. The company operates its retail stores under the Natural Grocers, Vitamin Cottage, Health Hotline, Natural Grocers by Vitamin Cottage trademark, as well as Vitamin Cottage Natural Grocers and Health Hotline trademarks. The company also offers science-based nutrition education programs to help customers make informed health and nutrition choices. The company was formerly known as Vitamin Cottage Natural Food Markets, Inc. Natural Grocers by Vitamin Cottage, Inc. was founded in 1955 and is headquartered in Lakewood, Colorado.

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.

Natural Grocers by Vitamin Cottage, Inc. has a Value Score of 73, which is considered to be undervalued.

Natural Grocers by Vitamin Cottage, Inc.’s price-earnings ratio is 12.0 compared to the industry median at 23.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Natural Grocers by Vitamin Cottage, Inc. more attractive for value investors.

Natural Grocers by Vitamin Cottage, Inc.’s price-to-book ratio is higher than its peers. This could make Natural Grocers by Vitamin Cottage, Inc. less attractive for value investors when compared to the industry median at 2.96.

You can read more about Natural Grocers by Vitamin Cottage, 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.

Target Corporation’s Value Grade

Value Grade:

Metric	Score	TGT	Industry Median
Price/Sales	19	0.50	0.42
Price/Earnings	30	13.9	23.5
EV/EBITDA	34	9.9	13.4
Shareholder Yield	14	5.4%	0.4%
Price/Book Value	68	3.35	2.96
Price/Free Cash Flow	82	54.3	17.7

Target Corporation operates as a general merchandise retailer in the United States. The company offers apparel for women, men, young adults, kids, toddlers, and babies, as well as jewelry, accessories, and shoes; and beauty products, such as skin and bath care, cosmetics, hair care, oral care, deodorant, and shaving products. It also provides food and beverage products comprising dry and perishable grocery, including snacks, candy, beverages, deli, bakery, meat, produce, and food service; electronics which includes video games and consoles, toys, sporting goods, entertainment, and luggage; bed and bath, home décor, school/office supplies, storage, small appliances, kitchenware, greeting cards, party supplies, furniture, lighting, home improvement, and seasonal merchandise; and household essentials, such as household cleaning, paper products, over-the-counter healthcare, vitamins and supplements, baby gear, and pet supplies. In addition, the company sells merchandise through periodic design and creative partnerships, and shop-in-shop experience; and in-store amenities. It sells its products through its stores; and digital channels, including Target.com. Target Corporation was incorporated in 1902 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.

Target Corporation has a Value Score of 62, which is considered to be undervalued.

Target Corporation’s price-earnings ratio is 13.9 compared to the industry median at 23.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Target Corporation more attractive for value investors.

Target Corporation’s price-to-book ratio is lower than its peers. This could make Target Corporation more attractive for value investors when compared to the industry median at 2.96.

You can read more about Target 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.

Other Consumer Staples Distribution & 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 Consumer Staples Distribution & Retail stocks as well as other industrys.

Choosing Which of the 3 Best Consumer Staples Distribution & 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.

The Andersons, Inc. stock has a Value Grade of C.
Natural Grocers by Vitamin Cottage, Inc. stock has a Value Grade of B.
Target Corporation stock has a Value Grade of B.

Now that you have a bit more background about each of the 3 undervalued stocks in the Consumer Staples Distribution & 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 Consumer Staples Distribution & Retail Stocks

Want to learn more about Consumer Staples Distribution & 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.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.