Zacks Investment Research identified Signet Jewelers Ltd., Arrow Electronics, Inc., The Gap, Inc., and Occidental Petroleum Corp. as value stocks in its October 26, 2026, publication. The selection followed a mixed trading session where the Nasdaq Composite declined 2.6% to 26,008.86 and the S&P 500 fell 1.21% to 7,663.43, while the Dow Jones Industrial Average rose 11.89 points to 52,867.98.
Market volatility was driven by renewed concerns over artificial intelligence spending and geopolitical tensions in the Middle East. Zacks noted that Houthi strikes against Saudi targets heightened fears of regional instability and potential energy disruptions, which could keep oil prices elevated and inflationary pressures persistent. In this environment, the firm suggested that value stocks trading at discounts to intrinsic value may offer favorable entry points for investors prioritizing underlying business strength.
The screening process utilized the Price-to-Cash Flow (P/CF) ratio to evaluate these four companies. Zacks explained that this metric measures a stock's market price relative to per-share cash flow generation, often providing a more reliable indicator of financial health than Price/Earnings ratios because operating cash flow accounts for non-cash charges like depreciation and amortization.
Signet Jewelers, a specialty jewelry retailer operating brands including Kay Jewelers and Zales, holds a Zacks Rank #1. The company reported a trailing four-quarter earnings surprise average of 86.6%. Current financial-year consensus estimates project sales growth of 0.8% and earnings per share growth of 21.9%. Signet carries an A Value Score, and its shares have risen 12.8% over the past year.
Arrow Electronics, which sources technology solutions for manufacturers and service providers, also sports a Zacks Rank #1 with a trailing four-quarter earnings surprise average of 34.4%. Consensus estimates for the current financial year indicate sales growth of 27.6% and earnings per share growth of 92.7%. The stock has an A Value Score and has surged 74.6% over the past year.
The Gap, a major specialty apparel company, carries a Zacks Rank #2 and a trailing four-quarter earnings surprise average of 2.1%. Analysts expect sales to grow by 1% and earnings per share to increase by 13.2% for the current financial year. The company holds an A Value Score, while its shares have fallen 2.3% over the past year.
Occidental Petroleum, an international energy producer, also holds a Zacks Rank #2 with a trailing four-quarter earnings surprise average of 46.1%. Consensus estimates project sales growth of 8.2% and earnings per share growth of 204.1% for the current financial year. Occidental has an A Value Score, and its shares have advanced 46.8% over the past year.