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 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 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.

LuxExperience B.V.’s Value Grade

Value Grade:

LuxExperience B.V., through its subsidiary, operates digital platform for the luxury fashion in Germany, the United States, Europe, Middle East, Japan, mainland China, Hong Kong SAR, China, and internationally. The company offers womenswear, menswear, kidswear, fine jewelry, watches, fine jewelry and lifestyle products under the Mytheresa, NET-A-PORTER, MR PORTER, YOOX, and the OUTNET brand name. The company was formerly known as MYT Netherlands Parent B.V. and changed its name to LuxExperience B.V. in May 2025. LuxExperience B.V. was founded in 1987 and is based in Munich, Germany.

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.

LuxExperience B.V. has a Value Score of 88, which is considered to be undervalued.

When you look at LuxExperience B.V.’s price-to-sales ratio at 0.52 compared to the industry median at 0.43, this company has a higher price relative to revenue compared to its peers. This could make LuxExperience B.V.’s stock less attractive for value investors.

LuxExperience B.V.’s price-earnings ratio is 2.10 compared to the industry median at 22.10. This means it has a lower share price relative to earnings compared to its peers. This could make LuxExperience B.V. more attractive for value investors.

Now, let’s assess LuxExperience B.V.’s EV/EBITDA ratio, also known as enterprise multiple. At 1.3, when compared to the industry median of 13.8, 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. LuxExperience B.V.’s shareholder yield is lower 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. LuxExperience B.V.’s price-to-book ratio is lower than its industry median ratio of 1.85. This could make LuxExperience B.V. more attractive to investors looking for a new addition to their portfolio.

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 83, 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 1.85.

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.

OneWater Marine Inc.’s Value Grade

Value Grade:

OneWater Marine Inc. operates as a recreational marine retailer in the United States. The company offers new and pre-owned recreational boats and yachts, as well as related marine products comprising parts and accessories. It also provides boat repair and maintenance services; and other ancillary services, including indoor and outdoor storage, and marina services. In addition, the company arranges related boat financing, insurance, and extended service contracts for customers with third-party lenders and insurance companies. Further, it is involved in the rental of boats and personal watercraft. OneWater Marine Inc. was founded in 2014 and is headquartered in Buford, Georgia.

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.

OneWater Marine Inc. has a Value Score of 78, which is considered to be undervalued.

OneWater Marine Inc.’s price-to-book ratio is higher than its peers. This could make OneWater Marine Inc. less attractive for value investors when compared to the industry median at 1.85.

You can read more about OneWater Marine 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 75, which is considered to be undervalued.

Penske Automotive Group, Inc.’s price-earnings ratio is 11.8 compared to the industry median at 22.1. 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. more attractive for value investors when compared to the industry median at 1.85.

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.

Shoe Carnival, Inc.’s Value Grade

Value Grade:

Shoe Carnival, Inc., together with its subsidiaries, operates as a family footwear retailer in the United States. The company offers various products, including dress and casual shoes, sandals, boots, and athletic shoes; and non-athletics for men's, women's and children's shoes, as well as accessories. It also operates stores. The company sells its products through www.shoecarnival.com and www.shoestation.com, as well as through related mobile app. Shoe Carnival, Inc. was founded in 1978 and is headquartered in Fort Mill, South Carolina.

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.

Shoe Carnival, Inc. has a Value Score of 85, which is considered to be undervalued.

Shoe Carnival, Inc.’s price-earnings ratio is 9.5 compared to the industry median at 22.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Shoe Carnival, Inc. more attractive for value investors.

Shoe Carnival, Inc.’s price-to-book ratio is higher than its peers. This could make Shoe Carnival, Inc. less attractive for value investors when compared to the industry median at 1.85.

You can read more about Shoe Carnival, 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.

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 82, which is considered to be undervalued.

Upbound Group, Inc.’s price-earnings ratio is 14.4 compared to the industry median at 22.1. 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. fairly attractive for value investors when compared to the industry median at 1.85.

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.

• LuxExperience B.V. stock has a Value Grade of A.
• Monro, Inc. stock has a Value Grade of A.
• OneWater Marine Inc. stock has a Value Grade of B.
• Penske Automotive Group, Inc. stock has a Value Grade of B.
• Shoe Carnival, Inc. stock has a Value Grade of A.
• Upbound Group, Inc. stock has a Value Grade of A.

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 Thursday, February 19
• Is Lowe's Companies, Inc. (LOW) Overvalued?
• Is The TJX Companies, Inc. (TJX) Overvalued?
• Is Lowe's Companies, Inc. (LOW) Overvalued?

AAII Disclaimer

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