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Today's Exclusive News These 3 Stocks Trade at Discounts the Market Won't Ignore ForeverAuthored by Dan Schmidt. Date Posted: 1/5/2026. 
Article Highlights - 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 finished 2025 with a total return of about 18% — its third straight year above historical norms, though lower than the blockbuster 25% returns of 2023 and 2024. AI euphoria remains the dominant market theme entering 2026, and the usual suspects like NVIDIA Corp. (NASDAQ: NVDA) and Alphabet Inc. (NASDAQ: GOOGL) were up again on the first trading day. If you've ridden the AI rally since the market bottomed in 2022, 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 beginning the year trading at roughly 26x forward earnings, well above its 20-year average of about 16x. When valuations are this elevated, investors hunger for earnings growth, and high-multiple names can fall out of favor quickly if growth slows. If rates stay high, 2026 could be the year value investing stages a comeback. For the first time ever, James Altucher – one of America's top venture capitalists – is sharing how ANYONE can get a pre-IPO stake in SpaceX… with as little as $100! [[Click here now to view.]] Below are three ways to de-risk a portfolio by adding companies that enter the new year undervalued and overlooked. Each trades at a meaningful valuation discount to its industry average, yet fundamental and technical tailwinds suggest those discounts may not last. Comcast: Strong Balance Sheet and Sports Expansion Enhance Outlook The Comcast Corp. (NASDAQ: CMCSA) was one of the biggest victims of the cord-cutting revolution as customers migrated from expensive cable packages to a la carte streaming services. A lost decade is every investor's nightmare, and CMCSA is now about five months away from that milestone, trading roughly where it did in May 2016. But cord-cutting fatigue appears to be setting in: streamers are raising prices and frequently getting into costly disputes with major networks. Meanwhile, Comcast has quietly built a durable balance sheet with diversified revenue streams. Its forward price-to-earnings (P/E) ratio of 6.84 sits well below the communications industry average (16.5) and below major peers such as The Walt Disney Co. (NYSE: DIS) and AT&T Inc. (NYSE: T). 
Comcast's broadband business is a steady, high-margin cash-flow engine. Despite Connectivity and Platforms revenue declining 1.4% year over year in Q3 2025, the residential and business segments reported EBITDA margins of 37% and 56%, respectively. Advertising should get a lift in 2026 as 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 not remain a secret much longer: the stock is up nearly 10% over the last 30 days and technical signals point to further upside potential. Micron: An Essential AI Stock Trading at a Deep Discount How can a stock that posted roughly a 200% gain in 2025 still be considered undervalued? Despite its parabolic 2025, Micron Technology Inc. (NASDAQ: MU) remains relatively inexpensive within the AI and semiconductor complex, trading around 29x earnings versus roughly 75x for the broader tech sector. A 29x P/E isn't cheap compared with the overall market, but it looks attractive for a company delivering 57% year-over-year quarterly revenue growth, 57% gross margins, and repeated upward guidance. 
Memory is a high-margin business, and Micron's management says it is struggling to keep up with demand from data centers. The chart shows a healthy uptrend with support near the 50-day simple moving average (SMA). That aligns with the TradeSmith Health indicator: MU shares are in the Green Zone, signaling a strong trend with normal pullbacks. Pfizer: Fueling Pipeline Innovation Through Acquisitions Shares of healthcare giant Pfizer Inc. (NYSE: PFE) have struggled since the COVID-19 pandemic receded; the stock is down more than 30% over the past five years. Competitors such as Eli Lilly and Co. (NYSE: LLY) have surged on obesity drugs like Mounjaro, but Pfizer now trades near historical valuation lows — about 8.4x forward earnings — making it cheaper than many large-cap pharmaceutical peers. The company's acquisition of Seagen is beginning to pay off in oncology, contributing more than $6 billion in revenue since the deal closed in 2023. 
Although Pfizer was slow to pivot into the obesity drug market, it has bolstered its pipeline by acquiring two smaller drugmakers with oral and injectable treatment candidates. The market has largely discounted Pfizer in this space, creating a material valuation gap. Low expectations can create opportunity — the stock hasn't fully priced in Pfizer's potential to gain share in the GLP-1 market. Plus, Pfizer remains an appealing defensive holding given its low valuation and long record of dividend growth.
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