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Exclusive Story These 3 Stocks Trade at Discounts the Market Won't Ignore ForeverAuthor: Dan Schmidt. Published: 1/5/2026. 
In Brief - 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% — the third straight year above historical norms, though below the gangbusters 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) are trading higher again on the first day of the year. 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 entering the year trading at roughly 26x forward earnings, well above its 20-year average of about 16x. When valuations are this elevated, investors become ravenous for earnings growth, and high-multiple stocks can fall out of favor quickly if growth decelerates even slightly. If interest rates remain high, 2026 could be the year value investing stages a comeback. A former hedge fund manager known for cutting through market noise is briefly opening access to his flagship trading strategy. In a short demo, he explains how his "One Ticker" approach works — and how readers can access the full service for a year at a steep discount. Watch the brief demo here Below are three ideas to help de-risk a portfolio by adding stocks that enter the new year undervalued and overlooked. Each company trades at a meaningful valuation discount to its industry peers, 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 shifted from expensive cable bundles to a la carte streaming services. Comcast is roughly five months away from completing a "lost decade," trading near the same price it did in May 2016. Now, consumers are showing signs of cord-cutting fatigue as streamers raise prices and enter costly disputes with major networks. Meanwhile, Comcast has quietly built a sturdy balance sheet and 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 competitors like The Walt Disney Co. (NYSE: DIS) and AT&T Inc. (NYSE: T). 
Comcast's broadband business remains a steady, high-margin cash engine. 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. NBCUniversal's advertising business should also benefit in 2026, with 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, supporting its 4.4% dividend. Comcast's value story may be drawing more attention — the stock is up nearly 10% in the last 30 days — and several technical signals point to potential additional upside. Micron: An Essential AI Stock Trading at a Deep Discount How can a stock that climbed roughly 200% in 2025 still look undervalued? Despite its parabolic year, Micron Technology Inc. (NASDAQ: MU) remains one of the more attractively priced names tied to AI. It trades near 29x forward earnings while the broader tech sector sits close to 75x. A 29x P/E isn't cheap relative to the overall market, but it's compelling for a company posting 57% YOY quarterly revenue growth, roughly 57% gross margins, and repeatedly raising guidance. 
Memory businesses can be very high-margin, and Micron's management says it's struggling to keep up with insatiable data-center demand. Technically, the stock is in a healthy uptrend, repeatedly finding support at 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. Peers such as Eli Lilly and Co. (NYSE: LLY) have soared thanks to obesity drugs like Mounjaro, leaving Pfizer priced near historical lows (about 8.4x forward earnings) and cheaper than most large-cap pharmaceutical peers. Pfizer's acquisition of Seagen is beginning to bolster its oncology business, adding more than $6 billion in revenue since the deal closed in 2023. 
Pfizer has also bolstered its position in the obesity-drug market by acquiring two smaller drugmakers with oral and injectable options, strengthening its pipeline. The market has largely written Pfizer off in this space, which helps explain the valuation gap. Low expectations can create opportunity — the shares don't yet reflect the potential for Pfizer to capture meaningful GLP-1 market share. Additionally, Pfizer remains an attractive defensive holding given its low valuation and a long history of dividend growth.
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