Value stocks are now getting back in favor. It has been almost 7 years of growth and momentum leading the value in returns. This year we have seen significant capital move out of growth and into value.

If you are an investor seeking great value investments but you are not fully confident of buying small caps, you should consider mid cap stocks. These tend to show up more undervalued opportunities than large caps and the companies are generally better understood and more stable then smaller companies. Mid cap stocks should also be less volatile.

In this screen, I have stayed under a P/E ratio of 9 and a book value greater than the market value.

Interestingly, financials predominate this list, perhaps due to the perceived interest rate risk. Most of these companies also pay great dividends which is always an attractive quality in a value stock. Mid cap stocks with good dividends that you can buy for cheap right now, what is not to like!?

1. Aercap Holdings NV (AER)

The stock trades at 6.8 times earnings, with a price to book ratio of 0.93. The stock does not pay a dividend.

AerCap is an independent aircraft leasing company based in Dublin, Ireland. Being a capital intensive industry, debt is on the high side and the short term liquidity can be an issue, which is likely why the stock is cheap. Declining oil prices also allow the airlines to lease less and operate their old fuel inefficient planes. When the oil prices go up again, leasing will become more attractive all over again. This may be another industry where we may be seeing a cyclical low as there is a glut of airplanes in the inventory. Very interesting macro economic set up here that we need to keep an eye on.

2. Lincoln National Corporation (LNC)

The stock trades at 8.83 times earnings, with a price to book ratio of 0.70 and a dividend yield of 2.50%.

Lincoln National is a life insurance company providing a full range of insurance products. The stock values the company at $9.6 B. Overall a solid stock with great value now. The stock is down about 30% in the last 52 weeks as longer dated annuities and other similar products are interest rate sensitive.