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Exclusive Story 3 Undervalued Names Too Cheap to IgnoreReported by Nathan Reiff. Date Posted: 3/7/2026. 
Quick Look - 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 metrics that are historically low and/or competitive relative to peers across industries or the broader market. They also offer added benefits, such as compelling dividends or promising new product developments. While value plays can be harder to find when many companies have regained investor attention—or when apparent bargains have deteriorating operations—well-established and stable names can still present attractive opportunities. Even After a Rally, Merck May Be Undervalued as It Plans for Keytruda's Patent Change 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 close to 27. Analysts expect continued growth: the company is projected to see earnings rise by nearly 10% in the coming year, and analysts see about 5% additional upside in the near term. Driving Merck's momentum is its pembrolizumab cancer drug, Keytruda, which received approval for subcutaneous injection from the European Commission in late 2025 and reached roughly $8.4 billion in sales in Q4 2025—an increase of about 7% year-over-year (YOY). Keytruda also shows promise in ovarian cancer, potentially expanding its patient base. These factors should help Merck build revenue as it prepares for Keytruda's patent exclusivity to end in 2028. Merck's drug portfolio is broadening as well, including recent phase 3 trial results for a therapy known as Enflonsia (clesrovimab-cfor), an RSV treatment for young children. At the same time, the company is reorganizing its human health operations into two separate units—an effort designed to make it easier to grow non-oncology sales as Keytruda approaches patent expiry. External Pressures Weigh on Campbell's, but Dividend and Valuation Appeal Persist 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 YOY declines in organic net sales and consumption, and adjusted earnings per share (EPS) fell 13% over the same period. Margin improvement has been limited so far despite cost-saving measures. Near-term challenges are likely to persist given weak fiscal-year guidance, but Campbell's improving supply chain, strong brand loyalty—especially for premium offerings—and the potential easing of tariff pressures could help stabilize results over time. Additionally, Campbell's remains an attractive income play, offering an impressive yield of 5.9%, though its payout ratio is fairly high at over 80%, which may raise questions about long-term sustainability. Its P/E ratio of 13.5 is the lowest in about four years, factors that may convince some investors the stock is worth the risk despite Wall Street caution. A Recent US Foods Rally May Continue — Bottom-Line Growth Remains Intact Foodservice distribution leader US Foods (NYSE: USFD) has had a very different year from Campbell's—shares are up roughly 33% in the last 12 months. Even with that rally, its P/E ratio of 31.6 is still modest relative to many high-growth peers. On fundamentals, US Foods is showing tangible progress: the company reported improving profitability in the latest quarter, and full-year adjusted EBITDA rose 11% YOY. Better inventory management and cost-of-goods improvements are helping the company gain traction. With a $4 billion capital deployment plan in place, US Foods is positioned to sustain revenue momentum and continue lifting adjusted EBITDA. Analysts rate USFD a Moderate Buy based on 11 Buys and 2 Holds, implying roughly 15% upside potential.
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