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 Electronic Equipment, Instruments & Components 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 Electronic Equipment, Instruments & Components 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 Electronic Equipment, Instruments & Components 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 Electronic Equipment, Instruments & Components industry for Friday, February 20, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Electronic Equipment, Instruments & Components 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.

Avnet, Inc.’s Value Grade

Value Grade:

Avnet, Inc., distributes electronic component technology in the Americas, Europe, the Middle East, Africa, and Asia/Pacific. It operates through two segments, Electronic Components and Farnell. The company markets, sells, and distributes semiconductors; interconnect, passive, and electromechanical components; and other integrated and embedded components from electronic component manufacturers. It also offers design support that provides engineers with technical design solutions; engineering and technical resources to support product design, bill of materials development, and technical education and training; and supply chain solutions which provides support, warehousing, and logistics services to original equipment manufacturers, electronic manufacturing service providers, and electronic component manufacturers. In addition, the company provides embedded solutions, such as technical design, integration, and assembly of embedded products, systems, and solutions, as well as embedded display solutions comprising touch and passive displays; and develops and produces standard board and industrial subsystems, and application-specific devices that enable it to produce systems tailored to specific customer requirements. It serves various markets, such as automotive, defense, aerospace, medical, telecommunications, industrial, and digital editing. Further, it distributes kits, tools, and electronic and industrial automation components, as well as test and measurement products to engineers and entrepreneurs. Avnet, Inc. was founded in 1921 and is headquartered in Phoenix, Arizona.

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.

Avnet, Inc. has a Value Score of 68, which is considered to be undervalued.

When you look at Avnet, Inc.’s price-to-sales ratio at 0.24 compared to the industry median at 2.60, this company has a lower price relative to revenue compared to its peers. This could make Avnet, Inc.’s stock more attractive for value investors.

Avnet, Inc.’s price-earnings ratio is 27.00 compared to the industry median at 32.50. This means it has a lower share price relative to earnings compared to its peers. This could make Avnet, Inc. more attractive for value investors.

Now, let’s assess Avnet, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 11.2, when compared to the industry median of 15.3, 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. Avnet, 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. Avnet, Inc.’s price-to-book ratio is lower than its industry median ratio of 2.69. This could make Avnet, Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Avnet, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Avnet, Inc.’s price-to-free-cash-flow ratio is higher than its industry median ratio of 27.95. This could make Avnet, Inc. less attractive because the higher P/FCF ratio indicates that Avnet, Inc. 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.

Methode Electronics, Inc.’s Value Grade

Value Grade:

Methode Electronics, Inc. designs, engineers, produces, and sells mechatronic products internationally. The company operates in three segments: Automotive, Industrial, and Interface. The Automotive segment supplies electronic and electro-mechanical devices and related products to automobile original equipment manufacturers directly or through their tiered suppliers. This segment products include integrated overhead and center consoles, hidden and ergonomic switches, transmission lead-frames, complex insert molded solutions, LED-based lighting solutions, and sensors, which incorporate magneto-elastic sensing, or other sensing technologies that monitor the operation or status of a component or system. The Industrial segment manufactures exterior and interior lighting solutions, industrial safety radio remote controls, braided flexible cables, current-carrying laminated busbars and devices, custom power-product assemblies comprising PowerRail solutions, high-current high-voltage flexible power cabling systems, and powder-coated busbars that are used in various markets and applications, including aerospace, commercial vehicles, data centers, industrial equipment, military, power conversion, telecommunications, and transportation. The Interface segment provides a variety of high-speed digital communication over copper media solutions for the data center and broadband markets, and interface panel solutions for the appliance market; and solutions, including copper transceivers, distribution point units, and solid-state field-effect consumer touch panels. The company serves end markets of transportation, including automotive, commercial vehicle, e-bike, aerospace, bus, and rail; and cloud computing infrastructure, construction equipment, and consumer appliance industries. Methode Electronics, Inc. was incorporated in 1946 and is headquartered in Chicago, Illinois.

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.

Methode Electronics, Inc. has a Value Score of 97, which is considered to be undervalued.

Methode Electronics, Inc.’s price-to-book ratio is higher than its peers. This could make Methode Electronics, Inc. less attractive for value investors when compared to the industry median at 2.69.

You can read more about Methode Electronics, 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.

ePlus inc.’s Value Grade

Value Grade:

ePlus inc., together with its subsidiaries, provides information technology (IT) solutions that enable organizations to optimize IT environment and supply chain processes in the United States and internationally. The company sells third-party hardware, perpetual and subscription software, and maintenance; and software assurance and other third-party services. It also offers professional services, such as staff augmentation, project management, cloud consulting, Al advisory, consulting, security and collaboration solution, warehouse, configuration, and logistic service, as well as in the spaces of digital signage, EV charging solution, loss prevention and security, store opening, remodel, and store closing; and managed services comprising enhanced maintenance support or ePlus Lifecycle-Services Support, service desk, storage-as-a-service, azure recover, cloud managed, and managed security service, as well as managed service for infrastructure and cloud. In addition, the company offers financing arrangements, including sales-type and operating leases, loan, and consumption-based financing arrangement, as well as underwriting and management, and disposal of IT equipment and assets; and financing operations, such as sales, pricing, credit, contract, accounting, risk management, and asset management. Further, it finances IT equipment, communication-related equipment, medical equipment, industrial machinery and equipment, office furniture and general office equipment, transportation equipment, and other general business equipment; and provides financing solutions, including front-end processing, lifecycle and asset ownership, and end-of-life services. The company serves telecom, media and entertainment, technology, state and local government, educational institutions, healthcare, and financial services. The company was formerly known as MLC Holdings, Inc. and changed its name to ePlus inc. in 1999. ePlus inc. was founded in 1990 and is headquartered in Herndon, 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.

ePlus inc. has a Value Score of 75, which is considered to be undervalued.

ePlus inc.’s price-earnings ratio is 14.8 compared to the industry median at 32.5. This means that it has a lower price relative to its earnings compared to its peers. This makes ePlus inc. more attractive for value investors.

ePlus inc.’s price-to-book ratio is higher than its peers. This could make ePlus inc. less attractive for value investors when compared to the industry median at 2.69.

You can read more about ePlus 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 Electronic Equipment, Instruments & Components 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 Electronic Equipment, Instruments & Components stocks as well as other industrys.

Choosing Which of the 3 Best Electronic Equipment, Instruments & Components 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.

• Avnet, Inc. stock has a Value Grade of B.
• Methode Electronics, Inc. stock has a Value Grade of A.
• ePlus inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 3 undervalued stocks in the Electronic Equipment, Instruments & Components 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 Electronic Equipment, Instruments & Components Stocks

Want to learn more about Electronic Equipment, Instruments & Components 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.

• 3 Undervalued Electronic Equipment, Instruments & Components Stocks for Friday, February 20
• Is Amphenol Corporation (APH) Overvalued?
• 3 Undervalued Electronic Equipment, Instruments & Components Stocks for Thursday, February 19
• Is Amphenol Corporation (APH) Overvalued?

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