5 Value Stocks Breaking Out to New Highs

If the real estate market is all about “location, location, location,” the 2026 stock market can be described as “rotation, rotation, rotation.”

Despite the S&P 500 hovering near all-time highs and corporate earnings mostly topping analysts' estimates, a massive rotation out of tech stocks is underway, and many other less-risky sectors are benefiting as investors embrace a more risk-off market environment.

The rotation isn't contained to just precious metals or consumer staples either; many of 2025's most beaten-down stocks have quickly turned it around in 2026.

Today, we'll look at five undervalued stocks that recently started showing signs of a technical breakout. Each company listed here has a market cap of at least $2 billion and pays a dividend yield of at least 2% while maintaining a minimum Benzinga Edge Value Score of 85.

Ford Motor Co.

Benzinga Edge Value Score: 90.09

Legacy automakers could be making a comeback, as General Motors and now Ford (NYSE:F) report better-than-expected results. Ford announced its Q4 2025 results after the market closed on February 10. While revenue declined across all three segments, quarterly sales of $42.45 billion exceeded the $41.53 billion forecast. EPS of $0.13 came in below the expected $0.18, but shares rose in after-hours trading.

Perhaps most importantly, management expects the company's tariff burden to decline to $1 billion in 2026 after spending $2 billion on tariffs in 2025. Ford's dividend now yields 4.4% with a 52% payout ratio, and the lessened tariff burden should keep the payout sustainable for the foreseeable future.

Ford shares are up more than 45% over the past 12 months, quietly outpacing Tesla’s 21% gain in the same period. The stock had been trading just above the 50-day simple moving average (SMA) before the earnings report, and the long-term trend remains bullish despite the mixed results.

Suncor Energy Inc.

Benzinga Edge Value Score: 87.04

Suncor (NYSE:SU) is one of Canada's largest diversified oil and gas companies with a $65 billion market cap and more than $53 billion in sales over the last 12 months. Despite a scorching 23% gain so far in 2026, the stock still trades at just 15 times earnings and 1.7 times sales. It also pays a 3% dividend yield with a 47.6% payout ratio, and the payout has now been raised for four consecutive years.

A strong dividend and an affordable valuation make SU shares a compelling investment in 2026, and the company posted a slight beat on both EPS and revenue when it reported Q4 2025 results on February 3. Analysts at RBC Capital raised their price target from $69 to $75 following the report, representing potential upside of more than 35% from current levels.

The technical trend also points to long-term strength, although investors should be cautious of a short-term pullback as the price moves further from support at the 50-day SMA. The Moving Average Convergence Divergence (MACD) indicator also shows waning short-term momentum, so investors may want to ease into positions in Suncor stock.

Macy's Inc.

Benzinga Edge Value Score: 93.23

Macy's (NYSE:M) is quietly turning into a value stock champion. Despite a 44% gain over the last 12 months, the stock still trades at just 11 times forward earnings and 0.25 times sales. It has also restored its dividend after a suspension during the COVID-19 pandemic, paying a 3.4% yield with a 42% payout ratio following four consecutive annual raises.

The stock has been consolidating in a tight range following a surprising top-line and bottom-line Q3 2025 earnings beat on December 3, but technical signals indicate the uptrend may resume. The share price has dipped below the 50-day SMA, but the Relative Strength Index (RSI) and MACD both show that upward momentum is building. 

Gap Inc.

Benzinga Edge Value Score: 87.34

The Gap (NYSE:GAP) is another underdiscussed value story in the retail sector. Revenue growth has been flat at the company in the post-pandemic environment, but the Gap has been maximizing efficiency and improving EPS metrics since the end of the 2022 bear market, further evidenced by the Q3 2025 earnings release. EPS and revenue both came in above expectations in the November report, and the company has another catalyst on deck in early March, when Q4 results are due. GAP shares trade at just 12 times forward earnings and 0.69 times sales, and the 2.39% dividend yield is backed by a stable 29% payout ratio.

The stock flashed a Golden Cross on the daily chart in October and gained nearly 30% over the following three months. Several promising technical trends have emerged, including healthy support at the 50-day SMA and a bullish MACD. The share price is once again approaching the 50-day moving average, which could present a good entry point for new investors. 

BP plc

Benzinga Edge Value Score: 85.48

If we're investing for value, it’s not a bad idea to add exposure outside North America, and BP (NYSE:BP) could offer an intriguing opportunity following disappointing earnings news. The company reported its Q4 2025 results earlier this week, and beat EPS projections while posting a slight miss on sales. But the big news was the company announcing it was suspending its buyback program, and its 5% dividend yield is currently facing a payout ratio of over 300%. However, these problems are likely to be short-lived. The company still allocates only 22% of its cash flow to the dividend, and the stock trades at just 13 times forward earnings.

The stock buyback news sent the stock plummeting more than 5% in the session following the earnings release, but it stabilized around the 50-day SMA, which could become a new support area if other technical trends hold. The RSI has been trending higher since a December oversold reading, and the MACD crossed above its signal line earlier this year. BP shares still have technical tailwinds behind them and can overcome the mixed earnings report.