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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 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 Monday, October 12, 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.

Company	Ticker	Price/Sales	Price/Earnings	EV/EBITDA	Shareholder Yield	Price/Book Value	Price/Free Cash Flow	Value Grade
Advance Auto Parts, Inc.	AAP	0.29	23.6	7.5	1.7%	1.12	na	A
Caleres, Inc.	CAL	0.14	7.8	10.0	1.8%	0.62	6.8	A
Designer Brands Inc.	DBI	0.10	16.8	18.5	(0.1%)	0.97	2.6	B
Lands' End, Inc.	LE	0.24	0.9	6.3	2.7%	0.64	na	A
Zumiez Inc.	ZUMZ	0.25	18.7	8.6	5.9%	0.82	9.3	A

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.

Advance Auto Parts, Inc.’s Value Grade

Value Grade:

Metric	Score	AAP	Industry Median
Price/Sales	13	0.29	0.36
Price/Earnings	62	23.6	16.8
EV/EBITDA	22	7.5	11.4
Shareholder Yield	34	1.7%	0.0%
Price/Book Value	28	1.12	1.66
Price/Free Cash Flow	na	na	19.0

Advance Auto Parts, Inc. provides automotive aftermarket parts. The company offers batteries and battery accessories; belts and hoses; brakes and brake pads; chassis parts; climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts. It also provides air conditioning chemicals and accessories; air fresheners; antifreeze and washer fluid; electrical wire and fuses; electronics; floor mats, seat covers, and interior accessories; hand and specialty tools; lighting products; performance parts; sealants, adhesives, and compounds; tire repair accessories; vent shades, mirrors, and exterior accessories; washes, waxes, and cleaning supplies; and wiper blades. In addition, the company offers air filters; fuel and oil additives; fuel filters; grease and lubricants; motor oil; oil filters; part cleaners and treatments; and transmission fluid. Further, it provides battery and wiper installation; engine light scanning; electrical system testing, including batteries, starters, and alternators; oil and battery recycling; and loaner tool program services. The company serves professional installers and do-it-yourself customers. It operates stores and independently owned branded stores in the United States, Canada, Puerto Rico, the U.S. Virgin Islands, Mexico, and various Caribbean islands primarily under the Advance Auto Parts and Carquest trade brands. The company also offers its products online. The company was founded in 1929 and is based in Raleigh, North 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.

Advance Auto Parts, Inc. has a Value Score of 81, which is considered to be undervalued.

When you look at Advance Auto Parts, Inc.’s price-to-sales ratio at 0.29 compared to the industry median at 0.36, this company has a lower price relative to revenue compared to its peers. This could make Advance Auto Parts, Inc.’s stock more attractive for value investors.

Advance Auto Parts, Inc.’s price-earnings ratio is 23.60 compared to the industry median at 16.80. This means it has a higher share price relative to earnings compared to its peers. This could make Advance Auto Parts, Inc. less attractive for value investors.

Now, let’s assess Advance Auto Parts, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 7.5, when compared to the industry median of 11.4, 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. Advance Auto Parts, Inc.’s shareholder yield is higher 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. Advance Auto Parts, Inc.’s price-to-book ratio is lower than its industry median ratio of 1.66. This could make Advance Auto Parts, Inc. more attractive to investors looking for a new addition to their portfolio.

Caleres, Inc.’s Value Grade

Value Grade:

Metric	Score	CAL	Industry Median
Price/Sales	7	0.14	0.36
Price/Earnings	11	7.8	16.8
EV/EBITDA	37	10.0	11.4
Shareholder Yield	33	1.8%	0.0%
Price/Book Value	12	0.62	1.66
Price/Free Cash Flow	16	6.8	19.0

Caleres, Inc. engages in the designs, develops, sources, manufactures, and distributes footwear in the United States, Canada, East and Southeast Asia, and internationally. It operates through Famous Footwear and Brand Portfolio segments. The company offers licensed, branded, and private-label athletic, casual, and dress footwear products. The company provides brand-name fashion, casual, and athletic footwear, including Nike, Skechers, adidas, Crocs, Converse, Birkenstock, HeyDude, New Balance, Puma, Jordan, Vans, Bearpaw, Asics, and Brooks, as well as company-owned and licensed brands, such as Sam Edelman, Vionic, Allen Edmonds, Franco Sarto, Rykä, Vince, LifeStride, Dr. Scholl’s Shoes, Blowfish Malibu, and Naturalizer. The company also operates naturalizer.com, naturalizer.ca, vionicshoes.com, samedelman.com, samedelman.ca, samedelman.co.uk, allenedmonds.com, allenedmonds.ca, shoebank.com, drschollsshoes.com, lifestride.com, francosarto.com, and ryka.com websites. In addition, it designs, sources, manufactures, and markets footwear to retail stores, such as online retailers, national chains, department stores, mass merchandisers, and independent retailers. Further, the company wholesales men’s footwear, apparel, leather goods, and accessories under the Allen Edmonds brand; footwear for women under LifeStride brand; Italian footwear Franco Sarto brand; athletic footwear for women under the Rykä brand; women's shoe collection under the Vince brand; and women’s footwear collection under Veronica Beard brand. The company operates through retail shoe stores, wholesales, and e-commerce websites. The company was formerly known as Brown Shoe Company, Inc. and changed its name to Caleres, Inc. in May 2015. The company was founded in 1878 and is headquartered in Saint Louis, Missouri.

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.

Caleres, Inc. has a Value Score of 96, which is considered to be undervalued.

Caleres, Inc.’s price-earnings ratio is 7.8 compared to the industry median at 16.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Caleres, Inc. more attractive for value investors.

Caleres, Inc.’s price-to-book ratio is higher than its peers. This could make Caleres, Inc. less attractive for value investors when compared to the industry median at 1.66.

You can read more about Caleres, 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.

Designer Brands Inc.’s Value Grade

Value Grade:

Metric	Score	DBI	Industry Median
Price/Sales	5	0.10	0.36
Price/Earnings	45	16.8	16.8
EV/EBITDA	74	18.5	11.4
Shareholder Yield	50	(0.1%)	0.0%
Price/Book Value	23	0.97	1.66
Price/Free Cash Flow	6	2.6	19.0

Designer Brands Inc., together with its subsidiaries, engages in the design, production, and retailing of footwear and accessories in the United States, Canada, and internationally. It operates through two segments: Retail and Brand Portfolio. The company offers dress, casual, and athletic footwear and accessories, as well as handbags for women, men, and kids. It sells its products under the Vince Camuto, Keds, Topo, as well as Jessica Simpson, Lucky Brand, Le Tigre, and Hush Puppies brands. The company offers its products through its direct-to-consumer stores and e-commerce sites; and a portfolio of banners, including DSW Designer Shoe Warehouse, The Shoe Co, and Rubino; and mobiles applications. The company was founded in 1991 and is based in Columbus, 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.

Designer Brands Inc. has a Value Score of 78, which is considered to be undervalued.

Designer Brands Inc.’s price-earnings ratio is 16.8 compared to the industry median at 16.8. This means that it has a higher price relative to its earnings compared to its peers. This makes Designer Brands Inc. fairly attractive for value investors.

Designer Brands Inc.’s price-to-book ratio is higher than its peers. This could make Designer Brands Inc. less attractive for value investors when compared to the industry median at 1.66.

You can read more about Designer Brands 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.

Lands' End, Inc.’s Value Grade

Value Grade:

Metric	Score	LE	Industry Median
Price/Sales	11	0.24	0.36
Price/Earnings	1	0.9	16.8
EV/EBITDA	16	6.3	11.4
Shareholder Yield	28	2.7%	0.0%
Price/Book Value	13	0.64	1.66
Price/Free Cash Flow	na	na	19.0

Lands' End, Inc. operates as a digital retailer of apparel, swimwear, outerwear, accessories, footwear, home products, and uniforms in the United States, Europe, and internationally. The company operates through U.S. eCommerce, Europe eCommerce, Outfitters, Third Party, Licensing, and Retail segments. It also sells uniform and logo apparel to businesses and their employees, and student households; and earns royalties on the use of Lands’ End trademark. The company sells its products through its e-commerce websites and company operated stores, as well as through third party distribution channels under the Lands’ End, Lands’ End Lighthouse, Squall, Tugless Tank, Drifter, Outrigger, Marinac, Wanderweight, Beach Living, Supima, No-Gape, Anyweather, Waveshaper, Starfish, Little Black Suit, Iron Knees, Hyde Park, Year’Rounder, ClassMate, Willis & Geiger, and ThermaCheck brands. Lands’ End, Inc. was founded in 1963 and is headquartered in Dodgeville, 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.

Lands' End, Inc. has a Value Score of 99, which is considered to be undervalued.

Lands' End, Inc.’s price-earnings ratio is 0.9 compared to the industry median at 16.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Lands' End, Inc. more attractive for value investors.

Lands' End, Inc.’s price-to-book ratio is higher than its peers. This could make Lands' End, Inc. less attractive for value investors when compared to the industry median at 1.66.

You can read more about Lands' End, 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.

Zumiez Inc.’s Value Grade

Value Grade:

Metric	Score	ZUMZ	Industry Median
Price/Sales	11	0.25	0.36
Price/Earnings	50	18.7	16.8
EV/EBITDA	29	8.6	11.4
Shareholder Yield	14	5.9%	0.0%
Price/Book Value	18	0.82	1.66
Price/Free Cash Flow	23	9.3	19.0

Zumiez Inc. operates as a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women in the United States, Australia, Canada, Europe, and internationally. It offers hardgoods, including skateboards, snowboards, bindings, components, and other equipment. The company operates stores under the names of Zumiez, Blue Tomato, and Fast Times through zumiez.com, zumiez.ca, blue-tomato.com, and fasttimes.com.au e-commerce websites. Zumiez Inc. was incorporated in 1978 and is headquartered in Lynnwood, Washington.

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.

Zumiez Inc. has a Value Score of 91, which is considered to be undervalued.

Zumiez Inc.’s price-earnings ratio is 18.7 compared to the industry median at 16.8. This means that it has a higher price relative to its earnings compared to its peers. This makes Zumiez Inc. less attractive for value investors.

Zumiez Inc.’s price-to-book ratio is higher than its peers. This could make Zumiez Inc. less attractive for value investors when compared to the industry median at 1.66.

You can read more about Zumiez 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.

Advance Auto Parts, Inc. stock has a Value Grade of A.
Caleres, Inc. stock has a Value Grade of A.
Designer Brands Inc. stock has a Value Grade of B.
Lands' End, Inc. stock has a Value Grade of A.
Zumiez 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.

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.