3 Old Economy Stocks Winning in 2026

Welcome to Episode #435 of the Value Investor Podcast.

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

Technology stocks are struggling in 2026. But even with the sell-off in software, chips, and memory, many of the stocks are still not that cheap.

The Old Economy is Back

However, there’s one area which is making a comeback in 2026: the old economy stocks. These are companies that have been around for several decades. They aren’t technology companies although they may have business opportunities with some of them this year.

Valuations also look attractive with these companies. Some are true classic value companies, with forward price-to-earnings (P/E) under 15. But they also are expected to have strong earnings growth.

Don’t count out companies in the “old economy” industries such as the auto sector, energy, and transportation this year.

3 Old Economy Stocks Winning in 2026

1. BorgWarner Inc. (BWA)

BorgWarner delivers innovative and sustainable mobility solutions around the world, especially in the automotive industry. Recently, the company announced it had entered into an agreement with TurboCell to provide a modular turbine generator system to supply power to an AI data center.

Shares of BorgWarner have soared in the last year, adding 91.2%. In 2026, it has gained 21.1%. Earnings are expected to rise 2.4% in 2026 and another 10.3% in 2027.

Even though the shares have rallied, BorgWarner is still cheap. It trades with a forward price-to-earnings (P/E) ratio of 10.5. A P/E under 15 is considered a value.

Should a company adding data center opportunities like BorgWarner be on your short list?

2. Siemens Energy AG (SMERY)

Siemens Energy is a global leader in energy technology. In its first quarter 2026 earnings report in Feb 2026, it said it saw a strong start to the financial year. Siemens Energy saw sustained high demand in gas turbines and grid technologies business.

Shares of Siemens Energy soared 200% in the last year and are up 24% year-to-date. Earnings are equally as hot. The Zacks Consensus is looking for earnings to grow 177% in fiscal 2026 and another 36% in fiscal 2027.

It’s not as cheap as BorgWarner, however. Siemens Energy trades with a forward P/E of 34.9. That makes it a growth stock.

Is an old economy energy company like Siemens Energy a stock for your short list in 2026?

3. Wabtec Corp. (WAB)

Wabtec is a provider of equipment, systems, digital solutions and value-added services for the freight and transit rail industries, as well as the mining, marine, and industrial markets. It’s been in business for 150 years and operates in 50 countries.

That’s “old economy” if ever there was one.

Shares of Wabtec are up 39.4% over the last year and 20% year-to-date, hitting new 5-year highs this year. On Feb 11, 2026, Wabtec reported its fourth quarter and full year 2025 results. It had a multi-year backlog that reached another record at $27 billion, up 23% year-over-year.

In Feb 2026, Wabtec increased its dividend by 24% and raised its share buyback program to $1.2 billion.

Earnings are expected to rise 14.9% in 2026 and another 12.2% in 2027. It’s not a classic value stock. Wabtec trades with a forward P/E of 24.3 but that is attractive given its growth trajectory.

Should a transportation company like Wabtec be on your short list?

What Else Should You Know About the Old Economy Stocks in 2026?

Tune into this week’s podcast to find out.

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BorgWarner Inc. (BWA): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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