3 Traditional Economy Stocks Leading the Way in 2026

Value Investor Podcast Episode 435: Highlights

Welcome to the 435th episode of the Value Investor Podcast. Each week, Tracey Ryniec, the editor behind Zacks Value Investor portfolio, offers her insights into value investing strategies and shares her top stock recommendations.

Technology Stocks Face Challenges in 2026

In 2026, technology shares have encountered significant headwinds. Despite declines in software, semiconductor, and memory stocks, many names in this sector remain relatively expensive.

The Resurgence of Traditional Industries

This year has seen a revival of so-called “old economy” stocks—companies with decades-long histories that are not primarily focused on technology, though some are finding new tech-related opportunities in 2026.

Many of these established firms are trading at appealing valuations, with several boasting forward price-to-earnings ratios below 15, while also projecting robust earnings growth.

Industries such as automotive, energy, and transportation should not be overlooked by investors seeking value in the current market environment.

Three Leading Old Economy Stocks in 2026

• BorgWarner Inc. (BWA)

  BorgWarner is recognized for delivering advanced and sustainable mobility solutions, particularly within the automotive sector. The company recently revealed a partnership with TurboCell to supply a modular turbine generator system for powering an AI data center.

  Over the past year, BorgWarner shares have surged by 91.2%, with an additional 21.1% gain in 2026. Earnings are forecasted to climb 2.4% this year and 10.3% in 2027.

  Despite this impressive rally, BorgWarner remains attractively priced, trading at a forward P/E of 10.5—well within value territory.

  With its expansion into data center solutions, BorgWarner could be a compelling addition to your watchlist.

• Siemens Energy AG (SMERY)

  Siemens Energy stands as a global powerhouse in energy technology. In its first quarter 2026 earnings report, the company highlighted a robust start to the fiscal year, driven by strong demand for gas turbines and grid technology.

  Shares have skyrocketed 200% over the past year and are up 24% so far in 2026. According to Zacks Consensus, earnings are projected to soar 177% in fiscal 2026 and rise another 36% in 2027.

  While not as inexpensive as BorgWarner, Siemens Energy trades at a forward P/E of 34.9, positioning it as a growth stock.

  Investors may want to consider whether this established energy leader deserves a spot on their shortlist this year.

• Wabtec Corp. (WAB)

  Wabtec provides equipment, systems, digital solutions, and value-added services for freight and transit rail, as well as the mining, marine, and industrial sectors. With a 150-year history and operations in 50 countries, Wabtec epitomizes the “old economy.”

  The company’s shares have climbed 39.4% in the past year and 20% in 2026, reaching new five-year highs. On February 11, 2026, Wabtec reported record results, including a multi-year backlog of $27 billion—up 23% year-over-year.

  In February 2026, Wabtec boosted its dividend by 24% and expanded its share repurchase program to $1.2 billion.

  Earnings are anticipated to increase by 14.9% in 2026 and 12.2% in 2027. While its forward P/E of 24.3 is higher than classic value stocks, the company’s growth prospects make it attractive.

  Wabtec’s strong performance may warrant consideration for investors interested in transportation stocks.

Additional Insights on Old Economy Stocks for 2026

For a deeper dive into these trends and more, be sure to listen to this week’s podcast episode.

The Next Phase of AI Investing

While the AI boom has already created significant wealth, the most well-known companies may not offer the largest gains going forward. Lesser-known AI firms addressing major global challenges could present greater opportunities in the near future.

Learn more here

Get More Stock Recommendations

Looking for the latest picks from Zacks Investment Research? Download the “7 Best Stocks for the Next 30 Days” for free. Click here to access the report.

• BorgWarner Inc. (BWA): Free Stock Analysis Report
• Wabtec (WAB): Free Stock Analysis Report
• Siemens Energy AG Unsponsored ADR (SMERY): Free Stock Analysis Report

Original article available on Zacks Investment Research

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