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Additional Reading from MarketBeat 3 Undervalued Names Too Cheap to IgnoreReported by Nathan Reiff. Published: 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.
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Highly publicized growth trajectories of some of the biggest companies out there may make 2026 look like a poor time for a value strategy. Still, several fairly sizable firms are trading at attractive valuations and offer potential for share price appreciation alongside fundamental growth. The companies below represent potential value plays, based on value metrics that are historically low and/or competitive relative to peers or the broader market. They also offer added benefits, such as compelling dividends or promising new product developments. While value opportunities can be harder to find when many growth names are back in favor — and some apparent bargains come with deteriorating operations or other red flags — well-established, stable names can still be compelling prospects. Even After the Rally, Merck May Be Undervalued, with Planning Underway for Keytruda Med-X is gearing up for a possible Nasdaq listing (ticker: MXRX). But the real opportunity is now – before they hit the big stage.
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With $6.4M in sales in just four years, they're getting ready for the next step. Become a Med-X Shareholder Before Their Nasdaq Plans Unfold Although shares have climbed more than 28% in the past 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 near 27. Analysts expect continued growth: the company is projected to see earnings rise by nearly 10% next year and the stock shows roughly 5% 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, an increase of nearly 7% year-over-year (YOY). Keytruda is also showing promise in ovarian cancer indications, which could broaden its patient base — important as Merck prepares for Keytruda's patent expiration in 2028. Merck's portfolio is expanding beyond oncology. The company recently announced phase 3 results for clesrovimab-cfor (Enflonsia), an RSV treatment for young children. At the same time, Merck is reorganizing its human-health operations, splitting that branch into two units to make it easier to grow non-oncology sales as it navigates the post-Keytruda landscape. External Pressures Weigh on Campbell's, but Dividend and Valuation Still Appeal Campbell's (NASDAQ: CPB) has seen its shares fall roughly 37% over the past year as the food-and-beverage staple faced tariff and inflation pressures. In Q1 fiscal 2026 (ended Nov. 2, 2025), the company recorded modest year-over-year declines in organic net sales and consumption, and adjusted earnings per share (EPS) fell 13%. Compounding the challenge, margin improvements have been limited so far despite cost-saving initiatives. The near term may remain difficult, with fiscal-year guidance on the weak side. That said, Campbell's improving supply chain and strong brand loyalty — especially for its premium offerings — should provide some protection. A shift in tariff dynamics could also ease margin pressure over time. Campbell's remains an attractive dividend name, offering an impressive yield of 5.9%, though its payout ratio is fairly high at over 80%. Its P/E ratio of about 13.5 is the lowest in roughly four years, factors that may persuade some investors the stock is worth the risk despite Wall Street caution. A Recent US Foods Rally May Continue as Bottom-Line Growth Persists Foodservice-distribution leader US Foods (NYSE: USFD) has moved in the opposite direction of Campbell's — shares rose about 33% over the past year. Its reported P/E ratio is roughly 31.6. Fundamentally, US Foods is showing progress: 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 are helping the firm gain traction. With a $4 billion capital-deployment plan in place, US Foods appears positioned to sustain revenue momentum and continue growing adjusted EBITDA. Analysts rate USFD as a Moderate Buy (11 Buys, 2 Holds) with roughly 15% upside potential.
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