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Sunday's Featured News 3 Undervalued Names Too Cheap to IgnoreBy Nathan Reiff. Publication Date: 3/7/2026. 
Key Points - 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.
- Special Report: The Biggest IPO Ever: Claim Your Stake Today
Highly publicized growth trajectories of some of the biggest companies out there may make it seem like 2026 is not a prime time for a value strategy. Still, several sizable firms are trading at attractive valuations and offer the potential for share price appreciation alongside fundamental growth. The companies below represent potential value plays, based on historically low value metrics or valuations that are competitive relative to peers and the broader market. They also offer additional benefits, such as compelling dividends or promising new product developments. While genuine value opportunities can be harder to find when many growth names have attracted renewed investor attention — and some apparent bargains mask deteriorating operations or other red flags — well-established, stable names can still present compelling value prospects. Even After Rally, Merck May Be Undervalued, With Careful Planning for Keytruda in the Works Although shares have climbed more than 28% in the last year, bringing its market capitalization to nearly $300 billion, biopharma giant Merck & Co. Inc. (NYSE: MRK) still trades at a price-to-earnings (P/E) ratio of about 16.45, well below the medical industry average of roughly 27. Analysts expect continued growth: the company is projected to see earnings rise nearly 10% in the coming year and has a 5% additional upside in the near term. Driving Merck's momentum is its pembrolizumab cancer drug, Keytruda, which received European Commission approval for subcutaneous injection in late 2025 and generated about $8.4 billion in sales in Q4 2025, up almost 7% year-over-year. Keytruda also shows promise in ovarian cancer, potentially expanding its addressable patient population. These trends should help Merck build revenue as it prepares for Keytruda's patent expiration in 2028. Merck's drug portfolio is broadening: the company recently announced notable phase 3 trial results for Enflonsia (clesrovimab-cf), a treatment for RSV in young children. At the same time, Merck is making strategic organizational changes as it prepares for Keytruda's patent lapse, splitting its human health division into two units to better 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 roughly 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 declines in organic net sales and consumption, and adjusted earnings per share (EPS) fell 13% over the same period. So far, margin improvement has been limited despite cost-saving initiatives. The near term will likely remain challenging for the iconic food brand, as fiscal-year guidance is soft overall. However, an improving supply chain and strong brand loyalty—particularly for its premium offerings—should help protect revenues. Shifts in tariff policy may also ease some of the external pressure the company faces. On the income side, Campbell's remains an attractive dividend play, yielding an impressive 5.9%, though its payout ratio is relatively high at over 80%. Moreover, Campbell's P/E ratio of about 13.5 is the lowest in roughly 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 — Bottom-Line Growth Remains in Place Foodservice distribution leader US Foods (NYSE: USFD) followed a markedly different path from Campbell's — shares have climbed about 33% in the last year. Its P/E of 31.6 reflects investor expectations for continued improvement and remains in line with the company's growth outlook. On the fundamentals, US Foods is making important strides: the company reported improving profitability in the latest quarter, with full-year adjusted EBITDA rising 11% year-over-year. Stronger inventory management and savings on cost of goods sold are helping the firm gain traction. With a planned $4 billion capital deployment strategy, US Foods is well-positioned to sustain revenue growth and continue expanding adjusted EBITDA. Analysts view USFD shares as a Moderate Buy based on 11 Buys and 2 Holds, with roughly 15% upside potential. | 
