Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 stocks made the list for top value stocks in the Distributors 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 Distributors 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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4 Undervalued Distributors Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 4 undervalued stocks in the Distributors industry for Thursday, February 19, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Distributors 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.

Alliance Entertainment Holding Corporation’s Value Grade

Value Grade:

Alliance Entertainment Holding Corporation operates as a wholesaler and e-commerce provider for the entertainment industry worldwide. It offers vinyl records, video games, digital video discs, blu-rays, toys, compact discs, collectibles, and other entertainment and consumer products. The company also provides third party logistics products and services. It distributes its physical media, entertainment products, hardware, and accessories through multi-channel strategy. The company exports its products. Alliance Entertainment Holding Corporation was founded in 1990 and is based in Plantation, 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.

Alliance Entertainment Holding Corporation has a Value Score of 80, which is considered to be undervalued.

When you look at Alliance Entertainment Holding Corporation’s price-to-sales ratio at 0.22 compared to the industry median at 0.59, this company has a lower price relative to revenue compared to its peers. This could make Alliance Entertainment Holding Corporation’s stock more attractive for value investors.

Alliance Entertainment Holding Corporation’s price-earnings ratio is 10.80 compared to the industry median at 15.35. This means it has a lower share price relative to earnings compared to its peers. This could make Alliance Entertainment Holding Corporation more attractive for value investors.

Now, let’s assess Alliance Entertainment Holding Corporation’s EV/EBITDA ratio, also known as enterprise multiple. At 10.1, when compared to the industry median of 14.1, 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. Alliance Entertainment Holding Corporation’s shareholder yield is the same than its industry median ratio of 0.00%. 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. Alliance Entertainment Holding Corporation’s price-to-book ratio is higher than its industry median ratio of 1.19. This could make Alliance Entertainment Holding Corporation less attractive to investors looking for a new addition to their portfolio.

GigaCloud Technology Inc.’s Value Grade

Value Grade:

GigaCloud Technology Inc. provides end-to-end B2B ecommerce solutions for large parcel merchandise in the United States and internationally. It offers GigaCloud Marketplace that integrates product discovery to payments and logistics tools into one easy-to-use platform. The company’s marketplace connects manufacturers primarily in Asia with resellers in the United States, Asia, and Europe to execute cross-border transactions across furniture, home appliance, fitness equipment, and other large parcel categories. The company was formerly known as Oriental Standard Human Resources Holdings Limited and changed its name to GigaCloud Technology Inc. in February 2021. GigaCloud Technology Inc. was incorporated in 2006 and is headquartered in El Monte, California.

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.

GigaCloud Technology Inc. has a Value Score of 87, which is considered to be undervalued.

GigaCloud Technology Inc.’s price-earnings ratio is 10.7 compared to the industry median at 15.4. This means that it has a lower price relative to its earnings compared to its peers. This makes GigaCloud Technology Inc. more attractive for value investors.

GigaCloud Technology Inc.’s price-to-book ratio is lower than its peers. This could make GigaCloud Technology Inc. more attractive for value investors when compared to the industry median at 1.19.

You can read more about GigaCloud Technology 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.

LKQ Corporation’s Value Grade

Value Grade:

LKQ Corporation engages in the distribution of replacement parts, components, and systems used in the repair and maintenance of vehicles and specialty vehicle aftermarket products and accessories. The company operates through four segments: Wholesale-North America, Europe, Specialty, and Self Service. It offers bumper covers, automotive body panels, and lights, as well as paint and paint related consumables for refinishing vehicles; mechanical automotive parts and accessories; salvage products, including mechanical and collision parts comprising engines; transmissions; door assemblies; sheet metal products, such as trunk lids, fenders, and hoods; and lights and bumper assemblies. The company also provides scrap metal and other materials to metals recyclers; precious metals, such as catalytic converters; and brake pads, discs and sensors, clutches, steering and suspension products, filters, and oil and automotive fluids, as well as electrical products, including spark plugs and batteries. In addition, the company distributes recreational vehicle appliances and air conditioners, towing hitches, truck bed covers, vehicle protection products, marine electronics, cargo management products, wheels, tires, and suspension products. It serves collision and mechanical repair shops, new and used car dealerships, and retail customers. The company operates in the United States, Canada, Germany, the United Kingdom, Belgium, the Netherlands, Luxembourg, Italy, the Czech Republic, Austria, Poland, Slovakia, France, and other European countries. LKQ Corporation was incorporated in 1998 and is headquartered in Antioch, 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.

LKQ Corporation has a Value Score of 85, which is considered to be undervalued.

LKQ Corporation’s price-earnings ratio is 12.3 compared to the industry median at 15.4. This means that it has a lower price relative to its earnings compared to its peers. This makes LKQ Corporation more attractive for value investors.

LKQ Corporation’s price-to-book ratio is lower than its peers. This could make LKQ Corporation more attractive for value investors when compared to the industry median at 1.19.

You can read more about LKQ 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.

Weyco Group, Inc.’s Value Grade

Value Grade:

Weyco Group, Inc. designs, markets, and distributes footwear for men, women, and children in the United States, Canada, Australia, Asia, and South Africa. It operates in two segments, North American Wholesale and North American Retail. The company offers mid-priced leather dress shoes and casual footwear composed of man-made materials and leather; and outdoor boots, shoes, and sandals under the Florsheim, Nunn Bush, Stacy Adams, BOGS, and Forsake brands. It engages in the wholesale of its products to footwear, department, and specialty stores, as well as e-commerce retailers in the United States and Canada. The company also operates e-commerce business; and brick and mortar retail stores in the United States. In addition, it has licensing agreements with third parties, who sell its branded apparel, accessories, and specialty footwear in the United States, as well as footwear in Mexico and certain markets overseas. The company was formerly known as Weyenberg Shoe Manufacturing Company and changed its name to Weyco Group, Inc. in April 1990. Weyco Group, Inc. was incorporated in 1906 and is based in Milwaukee, Wisconsin.

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.

Weyco Group, Inc. has a Value Score of 88, which is considered to be undervalued.

Weyco Group, Inc.’s price-earnings ratio is 12.5 compared to the industry median at 15.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Weyco Group, Inc. more attractive for value investors.

Weyco Group, Inc.’s price-to-book ratio is lower than its peers. This could make Weyco Group, Inc. fairly attractive for value investors when compared to the industry median at 1.19.

You can read more about Weyco 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 Distributors 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 Distributors stocks as well as other industrys.

Choosing Which of the 4 Best Distributors 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.

• Alliance Entertainment Holding Corporation stock has a Value Grade of B.
• GigaCloud Technology Inc. stock has a Value Grade of A.
• LKQ Corporation stock has a Value Grade of A.
• Weyco Group, Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 4 undervalued stocks in the Distributors 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 Distributors Stocks

Want to learn more about Distributors 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.

• 4 Undervalued Distributors Stocks for Thursday, February 19
• What You Need to Know About Genuine Parts Company's Q1 Earnings
• Why Alliance Entertainment Holding Corporation’s (AENT) Stock Is Down 5.45%
• Why Genuine Parts Company’s (GPC) Stock Is Down 12.82%

AAII Disclaimer

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