Have you ever felt like the stock market is a party where only the big players get to dance? With megacap tech stocks dominating headlines and driving the S&P 500 to dizzying heights, it’s easy to think the only way to win is to chase the likes of Nvidia or Alphabet. But what if the real opportunities—the kind that make your portfolio sing—are hiding in plain sight, away from the tech spotlight? I’ve spent years digging into markets, and let me tell you, there’s something deeply satisfying about uncovering a gem that Wall Street’s overlooked. Today, we’re diving into the world of value investing, spotlighting three undervalued stocks that could be your ticket to long-term gains.
Why Value Investing Still Shines in 2025
The S&P 500 has been on a tear, but let’s be real: it’s practically a tech ETF these days. A handful of megacap names have fueled the rally, leaving plenty of strong companies in other sectors trading at bargain prices. Value investing—snapping up stocks with solid fundamentals at low valuations—remains a timeless strategy. It’s not about chasing hype; it’s about finding businesses with real potential that the market’s sleeping on. In my experience, these hidden gems often deliver steady returns while reducing risk. So, where should you look in 2025? Let’s explore three standout picks that embody this approach.
Corebridge Financial: A Retirement Powerhouse
First up is a company that’s quietly making waves in the retirement services space. Corebridge Financial has caught the eye of savvy investors for its rock-bottom valuation and aggressive capital return strategy. Trading at a price-to-earnings (P/E) ratio of just five, this stock is practically screaming “undervalued.” What makes it stand out? For one, its robust share buyback program. The company’s pouring most of its capital into repurchasing its own shares, a move that could significantly boost shareholder value over the next five to seven years.
Buying back shares at these prices is like getting a discount on future growth.
– Veteran portfolio manager
Corebridge operates in a competitive field, but its focus on retirement and insurance services taps into a growing demographic need. People are living longer, and the demand for reliable retirement solutions is only climbing. The stock’s year-to-date performance has been steady, not flashy, which is exactly why it’s appealing. It’s not trying to be the next tech unicorn—it’s a solid business with a clear path to profitability. If you’re looking for a stock that offers stability and upside without the hype, this one’s worth a serious look.
- Low valuation: P/E ratio of 5 makes it a bargain.
- Share repurchasing: Aggressive buybacks signal confidence.
- Growing sector: Retirement services are in high demand.
Delta Air Lines: Flying High on Fundamentals
Next, let’s talk about Delta Air Lines. If you’ve glanced at its stock chart this year, you might’ve noticed it’s lagged behind, down about 4%. But don’t let that fool you—this airline is a diamond in the rough. Unlike its discount competitors struggling to stay afloat, Delta’s got a strong balance sheet and a management team that knows how to navigate turbulence. Travel demand is rebounding, and Delta’s positioned to capitalize on it with higher pricing power and improving margins.
Why do I like Delta? It’s not just about the numbers—though a single-digit P/E ratio is hard to ignore. It’s about the story. People are itching to travel again, whether for business or leisure, and Delta’s premium services give it an edge. Recent earnings reports show the company’s forecasting stronger-than-expected revenue, with bookings stabilizing after a rocky period. In a world where discount airlines are slashing fares to survive, Delta’s ability to maintain profitability makes it a standout.
| Metric | Delta Air Lines | Industry Average |
| P/E Ratio | Single-digit | Mid-teens |
| Balance Sheet | Strong | Variable |
| Revenue Forecast | Above estimates | Flat |
Investing in airlines can feel like a rollercoaster, but Delta’s fundamentals make it a smoother ride. If you’re hunting for a stock that’s undervalued but poised for recovery, this one’s a strong contender.
Merck: A Pharma Giant with Untapped Potential
Rounding out our trio is Merck, a pharmaceutical heavyweight that’s been quietly building a diversified empire. From vaccines to animal health to cutting-edge cancer treatments, Merck’s got its fingers in a lot of profitable pies. What’s exciting here is the pipeline—particularly their work combining Keytruda, their blockbuster cancer drug, with other therapies to target specific cancers. The potential for a breakthrough is real, and even if just one of these experiments pans out, it could be a game-changer.
A diversified portfolio in pharma is like a safety net for investors.
Merck’s not trading at a crazy discount like Corebridge or Delta, but its single-digit P/E ratio still screams value. The vaccine business is a steady cash cow, and their animal health division taps into a growing market (pet ownership is booming, after all). Perhaps the most intriguing part is their oncology pipeline. Cancer research is high-risk, high-reward, but Merck’s track record gives me confidence they’re on the right path. This is a stock for those who want exposure to healthcare without betting the farm on a single drug.
- Vaccines: A reliable revenue stream with global demand.
- Animal health: Tapping into the pet care boom.
- Cancer research: High-potential pipeline with Keytruda combos.
Why Look Beyond Big Tech?
Let’s step back for a second. Why bother with these stocks when tech giants are stealing the show? The answer lies in diversification and risk management. Tech stocks are fantastic—until they’re not. When the market corrects, as it inevitably does, those sky-high valuations can come crashing down. Value stocks like Corebridge, Delta, and Merck offer a buffer. They’re not sexy, but they’re steady, with fundamentals that can weather a storm. Plus, their low P/E ratios mean you’re not overpaying for growth that might not materialize.
In my view, the beauty of value investing is its simplicity. You’re buying good businesses at great prices, not chasing trends. These stocks aren’t going to double overnight, but they don’t need to. Steady growth, solid fundamentals, and a margin of safety—that’s the recipe for long-term wealth.
How to Approach Value Investing in 2025
So, how do you get started? Value investing isn’t about throwing darts at a board. It requires discipline, research, and a willingness to go against the crowd. Here’s a quick game plan to make the most of opportunities like Corebridge, Delta, and Merck:
- Do your homework: Look for companies with low P/E ratios, strong balance sheets, and clear growth drivers.
- Think long-term: Value stocks often take time to shine, so patience is key.
- Diversify: Don’t put all your eggs in one basket—spread your bets across sectors.
- Monitor buybacks: Companies repurchasing shares often signal confidence in future growth.
One thing I’ve learned over the years: the market rewards those who zig when others zag. Right now, while everyone’s chasing the next AI stock, the real opportunities might be in the sectors everyone’s ignoring. Corebridge, Delta, and Merck are just the start—there’s a whole world of value out there waiting to be discovered.
The Bigger Picture: Building Wealth with Value
Investing isn’t about getting rich quick—it’s about building wealth steadily. Value stocks like the ones we’ve discussed offer a way to do that without betting on the next big thing. They’re the kind of investments that let you sleep at night, knowing your portfolio’s built on solid ground. Maybe it’s not as glamorous as owning the latest tech darling, but there’s something deeply satisfying about finding a bargain and watching it grow.
What’s your take? Are you ready to look beyond the headlines and dig into the market’s hidden corners? The stocks we’ve covered today are a great place to start, but the journey’s yours to take. Keep an eye on the fundamentals, stay patient, and you might just find the next big opportunity before the crowd does.
Value Investing Formula: Low Valuation + Strong Fundamentals = Long-Term GainsAt the end of the day, value investing is about seeing what others miss. It’s about believing in a company’s potential even when the market’s too distracted to notice. So, go ahead—start digging. Your portfolio might thank you.
