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Exclusive News from MarketBeat Media 3 Undervalued Names Too Cheap to IgnoreAuthored by Nathan Reiff. Published: 3/7/2026. 
At a Glance - 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 biggest companies out there may make 2026 look like a poor 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, with valuation metrics that are historically low and/or competitive relative to peers or the broader market. They also offer added benefits, including compelling dividends or promising new product developments. While value opportunities can be harder to find—some apparent bargains suffer from deteriorating operations or other red flags—well-established and stable names can still present attractive 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 16.45, well below the medical industry average of nearly 27. Analysts expect continued growth: the company is projected to see earnings rise by nearly 10% in the coming year and has a 5% additional upside in the near term. Helping to drive Merck's momentum is its pembrolizumab cancer drug, Keytruda, which received European Commission approval for subcutaneous injection in late 2025 and reached roughly $8.4 billion in sales in Q4 2025, an increase of about 7% year over year. Keytruda also shows promise for ovarian-cancer indications, potentially expanding its patient base. These developments should help Merck continue to build revenue as it prepares for Keytruda's patent expiration in 2028. Merck's drug portfolio is broadening, including recent phase 3 trial results for clesrovimab-cfor (Enflonsia), a treatment for RSV in young children. At the same time, the company is making strategic moves ahead of Keytruda's patent expiry, splitting its human health division into two units to more easily expand 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 (ended Nov. 2, 2025), the company posted modest year-over-year declines in organic net sales and consumption, with adjusted earnings per share (EPS) down about 13% over the same period. Moreover, the company has not yet 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. Nevertheless, improving supply-chain operations and strong brand loyalty—particularly for its premium offerings—should provide some protection, and easing tariff pressures could further help the company. Additionally, Campbell's remains an attractive dividend play, with an impressive yield of 5.9%, though its payout ratio is fairly high at over 80%. 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 — Bottom-Line Growth Remains in Place Foodservice distribution leader US Foods (NYSE: USFD) saw a nearly opposite share-price trajectory to Campbell's—shares climbed about 33% in the last year. Its P/E ratio is 31.6, which is reasonable for the sector. On fundamentals, US Foods is making important strides: 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 improvements are helping the firm gain traction. With a $4 billion capital-deployment strategy in place, US Foods is well positioned to maintain revenue growth momentum and continue its upward trend in adjusted EBITDA. Analysts rate USFD as a Moderate Buy based on 11 Buys and 2 Holds, with roughly 15% upside potential.
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