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Today's Featured Content 3 Undervalued Names Too Cheap to IgnoreAuthor: Nathan Reiff. First Published: 3/7/2026. 
Summary - 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 it seem like 2026 is not a prime time for a value strategy. Still, some fairly sizable firms are trading at attractive valuations and offer potential for share price appreciation alongside fundamental growth. The companies below all represent potential value plays, including firms with historically low value metrics and/or metrics that are competitive relative to peers or the broader market. They offer added benefits such as compelling dividends or promising new product developments. While value opportunities can be harder to find when many promising companies have already regained investor attention — and some apparent value names face 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 by more than 28% in the last year, bringing its market capitalization to nearly $300 billion, biopharma giant Merck & Co. Inc. (NYSE: MRK) still carries a price-to-earnings (P/E) ratio of 16.45 — well below the medical industry average of close to 27. Analysts expect continued growth: the company is projected to see earnings rise by nearly 10% in the coming year and has a 5% near-term upside. 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 roughly $8.4 billion in sales in Q4 2025 — an increase of almost 7% year-over-year (YOY). Keytruda also shows promise in ovarian cancer, potentially expanding its patient base. Those trends should help Merck grow revenue as it prepares for Keytruda's expected loss of patent exclusivity in 2028. Merck's drug portfolio is broadening as well, including recent phase 3 results for Enflonsia (clesrovimab-cfor), a treatment for RSV in young children. At the same time, the company is reorganizing its human health business into two separate units, a move designed to make it easier to expand non–cancer-drug sales as Keytruda's exclusivity winds down. 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, which 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%. The company has yet to see notable margin improvement despite initiating cost-saving measures. The near term will likely remain challenging for the iconic food brand, as fiscal-year guidance appears weak overall. However, an improving supply chain and strong brand loyalty — particularly for premium offerings — should help protect the business. Shifting tariff dynamics may also ease some of the pressure Campbell's faces. On the dividend front, Campbell's remains attractive, offering an impressive 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's been in about four years. These factors may persuade some investors that the stock is worth the risk despite Wall Street caution. A Recent US Foods Rally May Continue; Bottom-Line Growth Remains in Place Foodservice distribution leader US Foods (NYSE: USFD) experienced a share-price trajectory almost directly opposite Campbell's — shares have climbed about 33% in the last year. Still, its P/E ratio sits at 31.6. On fundamentals, US Foods is making meaningful progress: the company reported improving profitability in the latest quarter and full-year adjusted EBITDA gains of 11% YOY. Stronger inventory management and savings in cost of goods sold are helping the firm gain traction. With a $4-billion capital deployment strategy in place, US Foods is positioned to sustain revenue momentum and continue improving adjusted EBITDA. Analysts view USFD shares as a Moderate Buy based on 11 Buys and 2 Holds, with roughly 15% upside potential.
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