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Further Reading from MarketBeat Media These 3 Stocks Trade at Discounts the Market Won't Ignore ForeverSubmitted by Dan Schmidt. First Published: 1/5/2026. 
Key Takeaways - 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 blockbuster 25% returns of 2023 and 2024. AI euphoria remains the dominant market theme entering 2026, and familiar names like NVIDIA Corp. (NASDAQ: NVDA) and Alphabet Inc. (NASDAQ: GOOGL) rose again on the first trading day. If you rode 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 the year trading at roughly 26x forward earnings, well above its 20-year average of about 16x. When valuations are this elevated, investors become hungry for earnings growth, and high-multiple stocks can fall out of favor quickly if growth moderates. If interest rates remain high, 2026 could be the year value investing stages a comeback. A tiny government task force just wrapped up 20 years of work.
And buried in their federal filings, I found something remarkable:
American citizens now have a legal birthright claim to something previously inaccessible.
Under U.S. law, you can stake your claim right now. The name and ticker are available here now >>> Below we look at ways to de-risk a portfolio by adding stocks that enter the new year undervalued and overlooked. Each company discussed 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 trend as customers left expensive cable packages for a la carte streaming services. CMCSA is approaching a painful milestone — it trades at roughly the same price it did in May 2016 — but the backdrop is improving as consumers show signs of cord-cutting fatigue and streaming services raise prices and face costly distribution disputes. Comcast has quietly built a sturdy balance sheet and diversified revenue streams. Its forward price-to-earnings (P/E) ratio of about 6.84 sits well below the communications industry average (16.5) and far below peers like The Walt Disney Co. (NYSE: DIS) and AT&T Inc. (NYSE: T). 
Comcast's broadband business remains a high-margin, steady cash generator. Although Connectivity and Platforms revenue slowed 1.4% year-over-year in Q3 2025, EBITDA margins for the residential and business segments were 37% and 56%, respectively. Advertising should also benefit 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, supporting its about 4.4% dividend. Comcast's value story may be drawing more attention — the stock is up nearly 10% in the past 30 days and a few technical signals point to further upside. Micron: An Essential AI Stock Trading at a Deep Discount How can a stock that climbed roughly 200% in 2025 still look undervalued? Even after its parabolic run, Micron Technology Inc. (NASDAQ: MU) remains relatively inexpensive within the AI and semiconductor complex. MU trades near 29x forward earnings while many growth-oriented tech names command multiples closer to 75x. A P/E of 29 isn't bargain-basement compared with the broader market, but it looks attractive given Micron's fundamentals: 57% year-over-year quarterly revenue growth, roughly 57% gross margins and repeatedly higher guidance. 
Memory chips are high-margin products, and management has said it is struggling to keep up with insatiable demand from data centers. The chart shows MU in a healthy uptrend, repeatedly finding support at the 50-day simple moving average. That aligns with the TradeSmith Health indicator — MU shares are in the Green Zone, signalling a strong trend with normal pullbacks. Pfizer: Fueling Pipeline Innovation Through Acquisitions Pfizer Inc. (NYSE: PFE) has struggled since the COVID-19 emergency receded; the stock is more than 30% lower over the past five years. Rivals like Eli Lilly and Co. (NYSE: LLY) have raced ahead with obesity drugs such as Mounjaro, but Pfizer now trades near historical lows on valuation (about 8.4x forward earnings) and is cheaper than most large-cap pharmaceutical peers. Its acquisition of Seagen is already boosting the oncology franchise, contributing more than $6 billion in revenue since closing in 2023. 
Pfizer is also building a presence in the obesity drug market, having acquired two smaller companies with oral and injectable candidates. The market appears to have low expectations for Pfizer's success in the GLP-1 space, which helps explain the valuation gap. Low expectations can create opportunity — and Pfizer also remains an attractive defensive holding thanks to its cheap valuation and long history of dividend growth.
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