The growth stocks are hitting new highs yet again, including the technology stocks, but what if you want a “true” value stock which is also growing earnings?
Are there any?
Where to Find Value Stocks in 2026
Value investors have been able to buy in several industries in the last few years which remained cheap on a valuation basis, including the banks, insurance, homebuilders, furniture retailers, oil stocks, gold miners, and the auto industry.
But in 2026, some of those industries don’t seem so cheap anymore. For example, many banks are now hitting new all-time highs and no longer have low price-to-book (P/B) ratios.
But the auto industry stocks are genuinely still cheap. This includes many of the auto retailers, the parts companies, and the auto manufacturers themselves.
And earnings are starting to turnaround in the auto industry.
Cheap and earnings growth. That’s a powerful combination.
3 Cheap Auto Stocks for Your Short List
1. Lear Corp. (LEA - Free Report)
Lear is a global automotive technology leader in Seating and E-Systems. It has beat on earnings 10 quarters in a row. On July 31, 2026, Lear reported second quarter 2026 earnings and beat the Zacks Consensus Estimate by 10%. It also raised full year 2026 guidance.
Earnings are expected to rise 16% in 2026 and 12.7% in 2027. Shares of Lear have fallen 9.9% in the last 3 months. It is cheap. Lear trades with a forward price-to-earnings (P/E) of 8. A P/E ratio under 10 is considered deep value.
Should Lear be on your short list?
2. Lithia Motors, Inc. (LAD - Free Report)
Lithia & Driveway is a global transportation company which operates 450+ automotive retail locations in the United States, Canada, and the UK through Lithia Motors and which operates Driveway where you can buy, sell, finance, or set up service on your car online.
On July 29, 2026, Lithia reported second quarter 2026 earnings and beat on the Zacks Consensus by 15.7%. It saw record quarterly revenue of $9.8 billion. Lithia raised full year guidance and increased its dividend by 23%.
Earnings are expected to rise 5.4% in 2026 but 15.4% in 2027. Shares of Lithia are up 30.4% in the last 3 months. But it’s still cheap with a forward P/E of 10.7.
Should an auto retailer like Lithia be on your short list?
3. General Motors Co. (GM - Free Report)
General Motors is a global auto manufacturer. It has a great earnings surprise track record with just one earnings miss in the last 5 years.
Shares of General Motors are up 12.2% in the last 3 months and are breaking out to new highs since 2011. Earnings are expected to be up 25.4% this year and another 10.8% in 2027.
General Motors is dirt-cheap. GM trades with a forward P/E of just 6.5. A P/E under 10 indicates deep value.
It also has a Zacks Value Style Score of A, the highest score.
Should an auto manufacturer like General Motors be on your short list?
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