Image: Bigstock

In 2021, it’s not all bad news for value investors. Momentum isn’t found just in growth stocks.

Many value stocks are also trading at new 52-week highs.

What are the hot, but cheap, stocks right now?

Screening for Value Stocks with Momentum

It’s an easy screen to find value stocks with momentum. For value, look for forward P/Es under 15 and a PEG ratio under 1.0. A PEG under 1.0 indicates both value and growth.

To find stocks with momentum, look for those trading within 5% of their 52-week highs.

This screen returns 45 stocks.

They were mostly in the hot value industries: oil, banks, autos, and retail.

5 Red-Hot Value Stocks to Buy Now

1. Macy’s (M - Free Report) is dirt cheap, with a forward P/E of just 7.6 even while shares are up 171% year-to-date. How could that be? Because the earnings are expected to soar 269% this fiscal year as the best holiday season ever looms. Macy’s is a Zacks Rank #1 (Strong Buy).

2. KeyCorp (KEY - Free Report) is a $22 billion market cap regional bank. Year-to-date the shares are up 44.7% but are still cheap, with a PEG ratio of just 0.6. It also pays a dividend, yielding 3.1%.

3. Comerica Inc. (CMA - Free Report), a Texas-based regional bank, has soared 58.8% year-to-date. But it, too, is cheap with a forward P/E of just 10.5. Its dividend is also yielding 3.1%.

4. Ford Motor Company (F - Free Report) is back in the spotlight thanks to the push to build electric vehicles. Shares are up 108% this year but are still dirt cheap, with a forward P/E of just 10.3.

5. Diamondback Energy (FANG - Free Report) is a $20 billion oil and natural gas producer in the Permian Basin in Texas. Shares have soared 128.9% year-to-date and remain cheap. Diamondback has a PEG ratio of just 0.5. It’s also a Zacks Rank #1 (Strong Buy).