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Today's Exclusive Content 3 Undervalued Names Too Cheap to IgnoreAuthor: Nathan Reiff. First 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 seem like an unlikely 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 are potential value plays, with value metrics that are either historically low or competitive relative to peers and the broader market. They also present added benefits, such as appealing dividends or promising new product developments. While value opportunities can be harder to find—some names that look cheap have deteriorating operations or other red flags—well-established, stable companies can still offer genuine value. Even After Rally, Merck May Be Undervalued, With Careful Planning for Keytruda in the Works Introducing "Elon Musk's Day-One Retirement Plan"
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But Elon Musk is about to make it a reality with something I'm calling… "Day-One Retirement Plan." Click here to see the details. Although shares have climbed more than 28% over 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 16.4—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 posted about $8.4 billion in sales in Q4 2025, up nearly 7% year-over-year. Keytruda also shows promise in ovarian cancer, which could expand its patient base and help Merck build revenue as it prepares for Keytruda's patent expiration in 2028. Merck's portfolio is broadening, too: the company recently announced phase 3 results for clesrovimab-cfor (branded as Enflonsia), a treatment for RSV in young children. At the same time, Merck is reorganizing its human health business—splitting it into two units—to make it easier to grow non-oncology sales ahead of the Keytruda patent loss. 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 faced pressure from tariffs and inflation. In Q1 fiscal 2026 (ended Nov. 2, 2025), organic net sales and consumption declined modestly year-over-year, and adjusted earnings per share (EPS) fell about 13%. The company has not yet seen meaningful margin improvement despite cost-saving initiatives. The near term will likely remain challenging for the iconic brand, as fiscal-year guidance is weak overall. Still, an improving supply chain and strong brand loyalty—particularly for premium offerings—should help protect the company. Easing tariff pressures could also reduce some of the headwinds it currently faces. Campbell's remains an attractive dividend play, offering a 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. Those factors may convince some investors the stock is worth the risk, despite Wall Street's cautious outlook. A Recent US Foods Rally May Continue as Bottom-Line Growth Persists Foodservice distribution leader US Foods (NYSE: USFD) has followed nearly the opposite trajectory of Campbell's—shares climbed roughly 33% over the last year. Even after that rally, the stock's P/E ratio sits at about 31.6, which remains reasonable compared with many high-growth peers. Fundamentally, US Foods is making strides: the company reported improving profitability in the latest quarter and full-year adjusted EBITDA gains of 11% year-over-year. Better inventory management and savings on cost of goods sold are helping the firm gain traction. With a $4 billion capital deployment plan in place, US Foods is well-positioned to sustain revenue momentum and continue growing adjusted EBITDA. Analysts rate USFD a Moderate Buy based on 11 Buys and 2 Holds, implying roughly 15% upside potential.
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