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Featured Story from MarketBeat 3 Undervalued Names Too Cheap to IgnoreWritten by Nathan Reiff. Originally 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.
- Special Report: [Sponsorship-Ad-6-Format3]
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 potential for share-price appreciation alongside fundamental growth. The companies below represent potential value plays, each showing 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 companies have regained investor attention—or when apparent bargains mask deteriorating fundamentals—well-established and stable names can still be attractive value prospects. Even After a Rally, Merck May Be Undervalued While Planning for Keytruda's Future Although shares have climbed more than 28% over 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 16.45, well below the medical industry average of roughly 27. Analysts expect continued growth: Merck is projected to see earnings rise by nearly 10% in the coming year and has about 5% additional upside in the near term. Driving Merck's momentum is its pembrolizumab cancer drug, Keytruda, which was approved for subcutaneous injection by the European Commission in late 2025 and generated roughly $8.4 billion in sales in Q4 2025—an increase of nearly 7% year-over-year (YOY). Keytruda also shows promise in ovarian cancer, potentially expanding its patient base. These factors should help Merck sustain revenue as it prepares for Keytruda's patent expiration in 2028. Merck's pipeline is broadening, with recent phase 3 results announced for clesrovimab-cfor (Enflonsia), a treatment for RSV in young children. At the same time, the company is restructuring its human health division—splitting it into two units—to more easily expand non-oncology drug sales as it plans for Keytruda's eventual loss of exclusivity. Campbell's Faces External Pressures but Offers Dividend Income and Value Campbell's (NASDAQ: CPB) shares have fallen about 37% over the last year as the food-and-beverage staple has been squeezed by tariffs and inflation. In Q1 fiscal 2026 (ended Nov. 2, 2025), the company reported modest year-over-year declines in organic net sales and consumption, with adjusted earnings per share (EPS) down 13%. Compounding the pressure, meaningful margin improvement has not yet materialized despite cost-saving initiatives. The near term is likely to remain challenging for the iconic brand, given weak fiscal-year guidance. Still, an improving supply chain and strong brand loyalty—especially for its premium offerings—should provide some protection. Shifts in tariff policy could also ease some of the headwinds the company faces. On the income front, Campbell's remains an attractive dividend play, sporting an impressive yield of 5.9%, although its payout ratio is fairly high at over 80%. Campbell's P/E ratio of 13.5 is the lowest in roughly four years, which may lead some investors to conclude the stock is worth the risk despite Wall Street's cautious outlook. US Foods' Rally Reflects Improving Fundamentals and Room to Run Foodservice distribution leader US Foods (NYSE: USFD) has seen shares climb about 33% over the last year. Despite the rally, its P/E ratio remains restrained relative to some markets at about 31.6. Fundamentals are improving: US Foods reported stronger profitability in the latest quarter and a full-year adjusted EBITDA gain of 11% YOY. Better inventory management and savings on the cost of goods sold are helping margins. With a $4 billion capital deployment plan, US Foods is positioned to sustain revenue growth and continue expanding adjusted EBITDA. Analysts rate USFD a Moderate Buy based on 11 Buys and 2 Holds, implying roughly 15% upside potential.
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