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Exclusive Story 3 Undervalued Names Too Cheap to IgnoreAuthor: Nathan Reiff. First Published: 3/7/2026. 
In Brief - Several established companies present potential value plays in early 2026 thanks to comparably low P/E ratios and strong fundamentals, despite broader market challenges.
- Merck's recent rally has not compromised its P/E ratio, which remains below the industry average, as the company navigates new ways to grow revenue amid its flagship Keytruda nearing patent expiration.
- Campbell's and US Foods offer contrasting cases: the former experiencing a sharp pullback and a high dividend yield, while the latter rallying amid adjusted EBITDA gains and the potential for further improvement.
Highly publicized growth trajectories of some of the largest companies may make 2026 seem like a poor time for a value strategy. Still, several sizable firms are trading at attractive valuations and offer potential for share-price appreciation alongside fundamental growth. The companies below are potential value plays, with metrics that are historically low or competitive relative to peers or the broader market. They also offer added benefits, such as attractive dividends or promising new product developments. Although value opportunities can be harder to find when many firms have received renewed investor attention—and some apparent bargains suffer deteriorating operations or other red flags—well-established, stable names can still present compelling value. Even After Rally, Merck May Be Undervalued, With Careful Planning for Keytruda in the Works I Met Elon Musk "Face-to-Face"
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I'm sharing an "access code" that lets anyone grab a pre-IPO stake before it happens. This is your invitation to the biggest wealth-building event of the decade. Click Here to See how to Get Your "SpaceX Access Code" Although shares have climbed by more than 28% in the last year, bringing its market capitalization to nearly $300 billion, biopharma giant Merck & Co. Inc. (NYSE: MRK) still carries a price-to-earnings (P/E) ratio of 16.45—well below the medical industry average of roughly 27. Analysts expect continued growth: the company is projected to see earnings rise by nearly 10% in the coming year and is estimated to have about 5% near-term upside. Helping drive Merck's momentum is its pembrolizumab cancer drug, Keytruda, which was approved for subcutaneous injection by the European Commission in late 2025 and reached about $8.4 billion in sales in Q4 2025, an increase of nearly 7% year-over-year (YOY). Keytruda also shows promise for ovarian cancer treatments, potentially drawing interest from a new pool of patients. These factors should help Merck continue to build revenue as it prepares for the loss of patent exclusivity on Keytruda in 2028. Merck's drug portfolio is broadening, including notable phase 3 trial results recently announced for clesrovimab-cfor (branded Enflonsia), a treatment for RSV in young children. At the same time, the company is making strategic moves ahead of Keytruda's patent expiration, splitting its human health division into two units to more easily grow its non-cancer drug sales. A Difficult External Situation Pressures Campbell's, But Strong Dividend and Value Remain Factors Campbell's (NASDAQ: CPB) shares have fallen about 37% over the last year as the food-and-beverage staple has faced pressure from tariffs and inflation. In Q1 fiscal 2026, which ended Nov. 2, 2025, the company reported modest year-over-year (YOY) declines in organic net sales and consumption, with adjusted earnings per share (EPS) down about 13% over the same period. So far, the company has not seen notable margin improvement after initiating cost-saving measures. The near term will likely remain challenging, as fiscal-year guidance is weak overall. However, an improving supply chain and strong brand loyalty—especially for premium offerings—should help protect the company. Shifts in the tariff landscape may also ease some of the pressure it currently faces. Additionally, Campbell's remains an attractive dividend play, with a yield of 5.9%, though the payout ratio exceeds 80%. Moreover, Campbell's P/E ratio of 13.5 is the lowest it has been in about four years. These factors may convince some investors that the stock is worth the risk, despite caution among Wall Street analysts. A Recent US Foods Rally May Continue as Bottom-Line Growth Remains in Place Foodservice distribution leader US Foods (NYSE: USFD) experienced a share price trajectory almost directly opposite Campbell's—over the last year, shares have climbed by about 33%. Its P/E ratio currently stands at 31.6. On the fundamentals front, US Foods is making important strides: the company reported improving profitability in the latest quarter and full-year adjusted EBITDA gains of 11% YOY. Better inventory management and reductions in cost of goods sold are helping the firm gain traction. With a $4 billion capital deployment strategy underway, US Foods is well-positioned to maintain revenue growth momentum and continue its upward trend in adjusted EBITDA. Analysts rate USFD a Moderate Buy based on 11 Buys and 2 Holds, implying roughly 15% upside potential.
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