10 Best Value Stocks Legendary Investor Donald Yacktman Was Buying Before AI Crash

8. Lockheed Martin Corporation (NYSE: LMT)

Yacktman Asset Management’s Stake Value: $110.54 Million

Forward P/E Ratio: 19.00x

Estimated Next-Year EPS Growth: 8.52%

Lockheed Martin Corporation (NYSE: LMT) is one of the world’s largest defense contractors, manufacturing military aircraft, missiles, helicopters, and space systems. Its major programs include the F-35 fighter jet and missile defense systems used by the US military and allied governments. The company’s long-term contracts and specialized defense technologies create substantial barriers to entry, although its performance remains tied to government spending, program execution, and procurement decisions.

Lockheed shares recently fell after Democrats won both chambers of Congress, which could make it harder to pass the defense spending increase the president wants. Costs on the F-35 Lot 20 contract have begun to exceed the funding the government has authorized, and the company says its results will suffer if more funding does not come. In the recently reported quarter, Aeronautics margin fell to 9.0% from 9.4% a year earlier. The stock trades at about 18.5 times forward earnings, a bit above its 5-year average of 17.9. Any of these could pressure Lockheed Martin shares.

At the end of the third quarter, Yacktman Asset Management owned 217,071 shares of Lockheed Martin valued at approximately $110.54 million. The firm increased its position by 0.33% during the quarter. Matrix Asset Advisors explained in its third-quarter 2026 investor letter why it was selling Lockheed Martin after strong performance, so read the full letter here.

7. Armstrong World Industries, Inc. (NYSE: AWI)

Yacktman Asset Management’s Stake Value: $122.92 Million

Forward P/E Ratio: 17.79x

Estimated Next-Year EPS Growth: 13.7%

Armstrong World Industries, Inc. (NYSE: AWI) manufactures ceiling systems, specialty walls, and architectural products used in commercial buildings, schools, hospitals, and other facilities. The company operates primarily in the North American building products market, where its established distribution channels, product offerings, and relationships with architects and contractors support its competitive position.

In its recently reported quarter, sales grew 12% from a year earlier, and Architectural Specialties grew 16% organically. Management raised its 2026 sales growth outlook to 10% to 11% from 9% to 11%, and it expects Architectural Specialties sales to grow 18% to 19% in 2026. Data center projects are a big driver of that demand, and the core ceiling business is raising prices, with average prices up 6% in the recently reported quarter from a year earlier.

Costs are rising fast. Management said freight and raw material inflation is the highest since 2022, and tariffs add to the pressure. It cut its 2026 adjusted EBITDA growth outlook to 8% to 10% from 9% to 12%. Free cash flow fell 13% in the recently reported quarter from a year earlier. The Parallel acquisition is also ramping slower than planned. If inflation keeps climbing, it could pressure Armstrong World Industries shares.

Yacktman Asset Management owned 759,082 shares of Armstrong World Industries worth approximately $122.92 million as of September 30, 2026. The firm increased its stake by 0.55% during the quarter. The London Company Small-Mid Cap Strategy highlighted Armstrong World Industries in its first-quarter 2026 investor letter as the company’s growth initiatives regained traction, so read their thesis here.

6. Tyson Foods, Inc. (NYSE: TSN)

Yacktman Asset Management’s Stake Value: $132.34 Million

Forward P/E Ratio: 14.59x

Estimated Next-Year EPS Growth: 9.6%

Tyson Foods, Inc. (NYSE: TSN) is one of America’s largest food producers, with operations spanning chicken, beef, pork, and prepared foods. Its portfolio includes well-known brands such as Tyson, Jimmy Dean, Hillshire Farm, and Ball Park. The company’s established brands, processing facilities, and distribution relationships give it a significant position in the US protein market, although earnings are sensitive to livestock supplies, feed costs, and commodity prices.

According to the third-quarter portfolio disclosure, Yacktman Asset Management held 2,618,960 shares of Tyson Foods worth approximately $132.34 million. The firm increased its position by 1.55% during the quarter.

Tyson is facing some headwinds in the beef segment. It buys cattle from ranchers and turns them into beef. Cattle are scarce, so ranchers charge more for each animal. Beef prices have risen too, but not enough to cover that cost, so the beef business still loses money. Fewer cattle also leaves Tyson’s plants with less to process. In September, Tyson cut its fiscal 2026 outlook because of beef, and it now expects revenue to grow only 1.5% to 2.0%. Tyson reports its next quarterly results soon, and any further beef losses could pressure Tyson Foods shares.

Tyson cut its fiscal 2026 profit forecast twice in less than a month because of the cattle shortage, yet chicken, prepared foods and the beef restructuring could still support a recovery, so click to see the recovery case.

5. Elevance Health, Inc. (NYSE: ELV)

Yacktman Asset Management’s Stake Value: $133.06 Million

Forward P/E Ratio: 14.9x

Estimated Next-Year EPS Growth: 3.9%

Elevance Health, Inc. (NYSE: ELV) is one of the largest health insurance and healthcare services companies in the United States. It operates health plans under the Anthem brand and provides pharmacy benefit management, behavioral health, and other healthcare services through its Carelon businesses. Its scale and diversified operations provide a substantial position in the US healthcare market, although medical cost trends and changes in government insurance programs can significantly affect profitability.

Yacktman Asset Management held 342,222 shares of Elevance Health valued at approximately $133.06 million at the end of September. The investment firm increased its holdings by 0.66% in the third quarter.

Elevance Health rose after Democrats won both chambers of Congress in the Nov. 3 midterm elections. Bulls believe the win helps because Elevance sells health plans in Medicaid and the Obamacare marketplace. A Democratic Congress could delay the Medicaid cuts passed in 2025 and extend the subsidies that help people afford Obamacare plans. Both would help Elevance keep members.

The overall bull case goes beyond the election. Elevance is one of the largest health insurers in the US, and its profits are recovering after a weak start to 2026. In its recently reported quarterly results, medical costs took a smaller share of premiums than in the same quarter a year earlier.

Seth Klarman’s Baupost Group holds Elevance Health, which ranks third on our list of his value stock picks for 2026, so check the full breakdown here.