12 undervalued stocks with strong upside potential in 2026

Buying an undervalued stock is like stumbling upon a forgotten treasure on a dusty shelf. The market, often irrational in the short term, always ends up correcting its excesses — both upwards and downwards. A solid, profitable company that’s temporarily overlooked due to noise or an unfavourable market cycle can offer an exceptional entry point before the market "corrects" itself.

In 2026, amid rising interest rates, geopolitical tensions, and accelerating technological change, many shares are trading below their fair value. Some show a P/E* that is unusually low for their growth potential, others offer growing dividends ignored by the market, and a few are simply suffering from a lack of narrative.

This is the mechanism we’ll examine here, through 12 stocks we consider undervalued but with real upside potential. For each one, we’ve analysed the fundamentals, identified possible catalysts, and evaluated the risks.

Here is our detailed selection of 12 undervalued stocks with high potential in 2026.

#1 – Meta Platforms

Meta remains one of the most well-positioned tech giants going into 2026, even after several phases of volatility. The advertising arm of its Family of Apps continues to deliver exceptional profitability, with operating margins still hovering around 50% despite heavy investment in AI infrastructure. The recent compression in valuation multiples reflects market caution more than any real deterioration in the business. For long-term investors, Meta offers a compelling combination of recurring growth, massive cash generation, and an increasingly attractive valuation for a company of this scale.

Engagement trends remain strong across its platforms, short-form video continues to drive strong retention, and the company’s advertising tools still hold a structural competitive edge. If AI-related spending normalises or if long-term initiatives begin to create tangible value, Meta could see a meaningful rerating over the next few quarters.

#2 – Walt Disney

Disney is slowly regaining healthier momentum after several challenging years. Streaming operations are now shifting towards profitability, theme parks are showing improving margins, and the company’s franchises remain unrivalled assets within the global entertainment industry. The share price still trades at a notable discount to the combined value of its divisions, creating an interesting entry point as the group undergoes restructuring and cost-cutting measures that are already starting to show results.

Visibility for the next few years remains solid: a more streamlined organisation, a renewed focus on premium content, tighter budget control and ongoing potential around ESPN’s strategic positioning. If the financial performance continues to improve, the market may gradually revalue the stock.

#3 – Comcast

Comcast, one of the largest broadband and media providers in the United States, continues to trade below its fair value despite operating a highly profitable and stable core business. The company generates consistent cash flow and currently trades at a valuation multiple below its historical average — more a reflection of market sentiment than any structural weakness. For investors seeking a defensive profile with predictable earnings, Comcast remains a solid and overlooked value opportunity.

#4 – Albemarle

Albemarle, one of the world’s leading lithium producers, has been hit by the sharp decline in lithium prices. However, this correction appears to reflect a temporary cyclical downturn rather than a long-term structural shift. The company maintains strong cost advantages, long-term contracts and a strategic position in global battery supply chains. Its valuation currently stands below its estimated fair value, even as demand for electric vehicles and energy storage continues to rise over the coming decade.

Investors may have overreacted to the fall in spot prices, overlooking the fact that much of Albemarle’s revenue is tied to multi-year agreements with more stable pricing dynamics. As the market eventually re-prices long-term fundamentals, Albemarle could benefit from a rapid and meaningful recovery.

#5 – Corteva

Corteva, a global leader in seeds and crop protection, operates in a sector that is essential yet often overlooked by European investors. The company benefits from a highly differentiated portfolio and premium agricultural solutions, which support consistent margins. Despite this, the valuation remains reasonable, supported by structural demand linked to global food production, climate adaptation and the growing need for higher agricultural efficiency.

With a modest discount relative to its long-term fundamentals, Corteva stands out as a defensive stock with reliable growth prospects — a rare combination in the current market.

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#6 – Eastman Chemical

Eastman Chemical, a specialist in advanced materials, is still perceived by many as a purely cyclical industrial stock — a view that no longer reflects the company’s transformation. Over recent years, Eastman has shifted its portfolio towards higher value-added materials, helping maintain margins even in a challenging macro environment. Today, the shares trade at a depressed P/E multiple, below sector averages and historical norms.

If industrial cycles normalise and demand for specialty materials continues to strengthen, Eastman could benefit from a natural rerating as its premium segments gain further traction.

#7 – CarMax

CarMax, the largest used-car retailer in the United States, has been particularly sensitive to tight credit conditions and rising borrowing costs. Despite this, the company’s integrated model and strong digital ecosystem have allowed it to preserve margins and improve operational efficiency. The share price now trades below its historical levels, reflecting macro pressure more than any structural issue within the business.

If financing conditions stabilise or consumer confidence improves, CarMax could quickly regain traction. Given the strength of its brand and omnichannel strategy, the current valuation represents a credible recovery opportunity.

#8 – Pfizer

Pfizer has been heavily penalised by the normalisation of Covid-related revenues, but this sharp market reaction overlooks the company’s long-term fundamentals. Earnings per share are recovering, and valuation metrics — including a notably low PEG ratio — suggest a genuine undervaluation. The company continues to invest in its pipeline, maintain strong free cash flow generation, and support an attractive dividend for income-focused investors.

As the market digests the post-Covid adjustment and shifts its attention back to Pfizer’s core portfolio and new launches, the stock could regain investor confidence and revalue accordingly.

#9 – AT&T

AT&T, one of the largest telecommunications companies in the United States, still suffers from a negative market perception despite tangible improvements in recent years. The deleveraging strategy is progressing, margins are stabilising and the stock trades at a very low P/E relative to peers. For investors seeking yield, AT&T remains one of the most compelling income plays in the telecom sector.

If market sentiment improves even modestly, the stock could benefit from significant upside given the current discount — making AT&T an attractive value play for 2026.

#10 – Ford

Ford continues to be undervalued due to concerns surrounding its electric vehicle strategy, even though its traditional and hybrid models still generate the majority of profits. The shares trade at a P/E below the sector average, despite a return to earnings growth and improving operational discipline. Unlike the mainstream narrative, Ford has deliberately slowed certain EV ambitions to reinforce its most profitable divisions, which enhances margin visibility.

With a diversified vehicle portfolio, a strong dealer network and targeted investments that align with consumer demand, Ford is far from being a speculative case. If the market recognises that the EV transition is not a binary bet but a strategic recalibration, the stock could see a faster-than-expected revaluation.

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#11 – Visa

Visa remains one of the most profitable companies in the world, with a ROIC consistently above 20% and revenue growth expected to remain in double digits. Recent volatility linked to regulatory discussions has brought the valuation back to attractive levels. For long-term investors, Visa is a top-tier stock — a dominant, capital-light business that becomes even more appealing during periods of temporary uncertainty.

As digital payments continue to expand globally and consumer spending remains resilient, Visa is well positioned to maintain its exceptional long-term trajectory.

#12 – Lululemon

Lululemon’s recent share price drop may suggest a softer business outlook, but the fundamentals remain remarkably strong. Gross margins still hover around 60%, free cash flow continues to grow and the company maintains a very low level of debt. The brand retains exceptional strength in North America while international expansion — particularly in Europe and Asia — remains far from saturated. The sharp compression in valuation multiples offers a rare entry point for a premium retail business of this calibre.

If global expansion accelerates and new product categories gain traction, the market could quickly reassess Lululemon’s potential. Despite the volatility typical of the retail sector, the company stands out as one of the most robust and profitable players in the industry.