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Further Reading from MarketBeat.com These 3 Stocks Trade at Discounts the Market Won't Ignore ForeverReported by Dan Schmidt. Originally Published: 1/5/2026. 
Key Points - The S&P 500 posted another gain above 15% in 2025, but the market is now approaching historically concerning valuation levels.
- When valuations are elevated, slowing earnings growth is harshly punished, and investors often turn to value stocks for safety.
- These three large-cap stocks all trade well below their industry-average P/E ratios, which could help protect against market volatility in 2026.
The S&P 500 wrapped up 2025 with a total return of about 18% — the third straight year above historical norms, but lower than the gangbusters 25% returns of 2023 and 2024. AI euphoria remains the dominant market trend entering 2026, and the usual suspects like NVIDIA Corp. (NASDAQ: NVDA) and Alphabet Inc. (NASDAQ: GOOGL) were higher on the first trading day of the year. If you've ridden the AI rally since the 2022 market bottom, you're likely sitting on substantial gains and may be looking to diversify, especially if your allocation is tech-heavy. The S&P 500 is entering 2026 trading at roughly 26x forward earnings, well above its 20-year average of 16x. When valuations are this elevated, investors become hungry for earnings growth, and high-multiple stocks can fall out of favor quickly if growth cools even slightly. If rates remain high, 2026 could be the year value investing stages a comeback. While President Trump's official salary is $400,000 per year... his tax returns reveal he's been collecting up to $250,000 PER MONTH from one hidden source. Until recently, most Americans couldn't touch the type of investment that makes up this investment. But thanks to Executive Order 14330, that just changed. If you love investing in disruptive new companies... Discover how to invest in the fund Trump uses to collect this income >> Below are three ways to de-risk a portfolio by adding stocks that enter the new year undervalued and overlooked. Each company here trades at a sizable valuation discount to its industry average, yet fundamental and technical tailwinds suggest those discounts may not persist. Comcast: Strong Balance Sheet and Sports Expansion Enhance Outlook The Comcast Corp. (NASDAQ: CMCSA) was one of the largest casualties of the cord-cutting revolution, as customers shifted away from bundled cable packages toward a la carte streaming services. A "lost decade" is every investor's nightmare: CMCSA is about five months from that milestone, trading near the price it was in May 2016. Now, cord-cutting fatigue appears to be setting in — streamers are raising prices and entering costly disputes with major networks. Meanwhile, Comcast has quietly built a solid balance sheet and diversified revenue streams, and its forward price-to-earnings (P/E) ratio of 6.84 is well below the communications industry average (16.5) and that of large competitors like The Walt Disney Co. (NYSE: DIS) and AT&T Inc. (NYSE: T). 
Comcast's broadband unit remains a steady, high-margin cash generator. Although Connectivity and Platforms revenue slowed 1.4% year-over-year (YOY) in Q3 2025, EBITDA margins for the residential and business segments were 37% and 56%, respectively. Advertising should also get a lift in 2026: NBCUniversal holds rights to Super Bowl LX, the FIFA World Cup and the Winter Olympics in Italy. The company generated $4.9 billion in free cash flow in Q3, which helps support its 4.4% dividend. Comcast's value story may be gaining attention — the stock is up nearly 10% over the past 30 days, and several technical signals point to further upside. Micron: An Essential AI Stock Trading at a Deep Discount How can a stock that delivered roughly 200% returns in 2025 still look undervalued? Despite a parabolic year, Micron Technology Inc. (NASDAQ: MU) remains among the more reasonably valued names tied to AI, trading around 29x earnings while the broader tech sector is nearer 75x. A 29x P/E isn't dirt cheap relative to the entire market, but it's attractive for a company reporting 57% year-over-year quarterly revenue growth, roughly 57% gross margins, and consistently raising guidance. 
Memory businesses are high-margin, and Micron's management says it is struggling to keep up with insatiable demand from data centers. The chart shows MU in a strong uptrend with support at the 50-day simple moving average (SMA). That technical picture is confirmed by TradeSmith's Health indicator — MU shares are in the Green Zone, signaling a healthy uptrend with normal pullbacks. Pfizer: Fueling Pipeline Innovation Through Acquisitions Shares of healthcare giant Pfizer Inc. (NYSE: PFE) have lagged since the COVID-19 pandemic receded; the stock is down more than 30% over the past five years. Rivals like Eli Lilly and Co. (NYSE: LLY) have outpaced Pfizer thanks to obesity drugs such as Mounjaro, but Pfizer now trades near historical lows — roughly 8.4x forward earnings — and is considerably cheaper than many large-cap peers. The company's acquisition of Seagen is beginning to show results in oncology, contributing more than $6 billion in revenue since the deal closed in 2023. 
While its pivot into the obesity-drug market has been gradual, Pfizer has bolstered its pipeline by acquiring two smaller drugmakers with oral and injectable treatment options. The market has largely discounted Pfizer's prospects in this area, creating a wide valuation gap. Low expectations can create opportunity — the stock hasn't yet priced in successful inroads into the GLP-1 market. Additionally, Pfizer remains a defensive name thanks to its low valuation and long track record of dividend growth.
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