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This Week's Bonus Story 3 Undervalued Names Too Cheap to IgnoreAuthored by Nathan Reiff. Posted: 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 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 represent 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 compelling dividends or promising new product developments. Although true value opportunities may be harder to find when many companies have regained investor attention — and some apparent bargains have deteriorating operations or other red flags — well-established and stable names can still be attractive value prospects. Even After Rally, Merck May Be Undervalued, With Careful Planning for Keytruda in the Works 3 Signs It May Be Time to Switch Financial Advisors… Your goals aren't being heard, you're making costly tax mistakes, or your portfolio strategy may not be aligned with market conditions. This free quiz matches you with vetted fiduciary advisors who serve your area — each legally bound to work in your interest. No cost, no commitment. Find your matches today. Although shares have climbed more than 28% over the past year — taking 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 nearly 10% in the coming year and has roughly 5% additional upside in the near term. Helping to drive Merck's momentum is its pembrolizumab cancer drug, Keytruda, which was approved for subcutaneous injection by the European Commission in late 2025 and generated about $8.4 billion in sales in Q4 2025, a year-over-year (YOY) increase of nearly 7%. Keytruda also shows promise in ovarian cancer, which could expand its patient base. These factors should help Merck continue to build revenue as it prepares for Keytruda's patent expiration in 2028. Merck's portfolio is broadening. The company recently announced notable phase 3 results for clesrovimab-cfor (Enflonsia), an RSV treatment for young children. At the same time, Merck is restructuring its human health business into two units to more easily expand its non–cancer-drug sales as Keytruda's exclusivity approaches. 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 been pressured by 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 about 13%. So far, the company has not seen notable margin improvement after initiating cost-saving measures. The near term will likely remain challenging for the iconic food brand, as fiscal-year guidance is weak overall. However, improving supply-chain execution and strong brand loyalty—especially for premium offerings—should help protect the business. Shifting tariff dynamics may also ease some of the external pressure. On top of that, Campbell's remains a compelling dividend play, offering an attractive yield of 5.9%, though its payout ratio is relatively high at over 80%. Moreover, Campbell's P/E ratio of 13.5 is the lowest it has been in roughly four years. These factors may persuade 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) saw a sharply different trajectory from Campbell's—shares climbed about 33% over the last year. Its valuation sits at a P/E of 31.6, which is reasonable given its recent performance and growth prospects. On the fundamentals, US Foods is making meaningful progress: the company reported improving profitability in the latest quarter and full-year adjusted EBITDA gains of 11% year over year. Stronger inventory management and cost-of-goods savings are helping the firm gain traction. With a $4 billion capital deployment strategy in place, US Foods is positioned to sustain revenue growth and continue expanding adjusted EBITDA. Analysts rate USFD shares a Moderate Buy based on 11 Buys and 2 Holds, with roughly 15% upside potential. | 
