1.LATAM Airlines Group
LTM (NYSE)
LATAM Airlines Group (LTM) is currently recognized as a Zacks Rank #1 value stock, with an impressive one-year return of 118.72% and a five-year return of 133.68%. Ideal for growth investors, LTM boasts a dividend yield of 3.66% and has seen rising consensus earnings estimates, reinforcing its position as a top choice in the airline sector.
Pros:
- Rising consensus earnings estimates
- Strong financial health
Cons:
- Market volatility risk
- Dependence on fuel prices
2.Dollar General
DG (NYSE)
Dollar General (DG) stands out as a strong buy value stock, boasting a Zacks Rank #1 and improving earnings estimates, making it a compelling choice for those seeking discount retail exposure in the U.S. The stock has delivered an impressive 1-year return of nearly 108% while maintaining a dividend yield of 1.63%. Analysts maintain a positive outlook, with a median 12-month price target of $137, supported by firms like Barclays and Bernstein rating it as Overweight and Outperform, respectively.
Pros:
- Strong buy value stock
- Improving earnings estimates
Cons:
- Market volatility risk
- Dependence on consumer spending
3.Expedia Group
EXPE (NASDAQ)
Expedia Group (EXPE) stands out as a top-rated investment in the travel sector, currently holding a Zacks Rank #1 for its strong value characteristics. With a robust 1-year return of 60.80%, this stock is ideal for investors seeking growth in a financially healthy company, supported by a dividend yield of approximately 0.67%. Analysts maintain a consensus rating of "Hold," with a median 12-month price target of $270, highlighting its potential amidst a backdrop of impressive historical performance.
Pros:
- Strong value characteristics
- Significant upside potential
Cons:
- Market competition
- Dependence on travel demand
4.Kohl's
KSS (NYSE)
Kohl's (KSS) is recognized as a strong buy value stock, making it an appealing choice for investors seeking robust value metrics within the U.S. retail sector. Despite its current dividend yield of 2.12% and a remarkable one-year return of 51.38%, analysts have expressed caution, with a consensus rating leaning towards sell amid concerns over the company's financial health and declining net sales. With a median 12-month price target of $22.50, Kohl's faces significant challenges, including a 56.34% drop over five years, suggesting a need for careful consideration before investing.
Pros:
- Strong value metrics
- Potential for recovery
Cons:
- Liquidity concerns
- Market competition
Final Words
As you consider the best value stocks this January 2026, keep in mind that options like Dollar General offer promising potential for growth and dividends. Take time to compare these investment opportunities and conduct your own research to make informed decisions that align with your financial goals.
Frequently Asked Questions
Dollar General (DG) is a Zacks Rank #1 strong buy value stock with improving earnings estimates, making it a solid option for discount retail exposure. Its market cap is $32.77 billion, and it offers a dividend yield of 1.63%, providing both potential growth and income.
Dollar General has shown impressive recent performance, with a 1-Year Return of 107.93% and a 3-Month Return of 50.03%. These figures indicate strong momentum in its stock price over the past year.
Dollar General's next dividend payment is scheduled for January 20, 2026, with a declared amount of $0.5900. The company distributes dividends quarterly, making it an attractive option for income-focused investors.
Value stocks, like Dollar General, often operate in sectors that provide essential goods and services, such as consumer defensive industries. This includes discount retailers, which tend to perform well even during economic downturns due to their focus on affordability.
To evaluate the risk of investing in value stocks, consider factors such as the stock's beta, financial performance, and market conditions. Dollar General has a beta of 0.26, indicating lower volatility compared to the broader market, which is a positive sign for risk-averse investors.
When comparing value stocks, focus on metrics such as the price-to-earnings (P/E) ratio, dividend yield, and recent performance trends. Analyzing these factors can help you identify undervalued stocks with strong potential for growth and income.


