Wall Street's hidden bargains: 10 US largecap stocks trading at historic discount for investors

US stocks have delivered modest gains over the past six months, even as investors have grown increasingly concerned about technology valuations, interest rates and the returns from artificial intelligence spending. Amid the uncertainty, at least 10 large-cap American stocks are trading at discounts of nearly 47% to 63% to their respective sector valuations, according to data from Vested Finance.

The S&P 500, a benchmark of America's largest listed companies, has gained about 4.3% over the past six months. The index has nevertheless experienced sharp swings during this period, reflecting changing expectations around corporate earnings, interest rates, geopolitical tensions and the sustainability of the rally in artificial intelligence-related stocks.

The benchmark ended October close to where it stood five months earlier, despite strong corporate earnings and continued enthusiasm for AI. Investors have increasingly questioned whether the billions of dollars being invested in AI infrastructure will generate sufficient returns.


Still, the S&P 500 remains up 10.2% so far in 2026, suggesting that the broader market has retained much of its gains despite recent volatility.

One notable change has been in valuations. The S&P 500's forward price-to-earnings ratio fell to around 18.5 times by the end of October, below its five-year and ten-year averages, as earnings expectations increased faster than share prices.

Against this backdrop, data from Vested Finance identifies 10 US-listed largecap stocks trading at substantial discounts to the forward earnings multiples of their respective sectors.

The analysis compares a company's forward price-to-earnings ratio, which measures its share price against expected earnings, with the corresponding sector average. A lower multiple suggests investors are paying less for each dollar of expected profit.

Comcast, the media and telecommunications company, trades at a forward P/E of just 6.9 times compared with the communication services sector average of 18.6 times, according to Vested Finance. That represents a discount of 62.9%, the largest among the stocks identified.

The company, valued at $84.8 billion, also trades at a trailing P/E of 7.6 times, below its five-year average of 14.04 times.

Universal Health Services ranks second, trading at 7.8 times forward earnings compared with the healthcare sector average of 18.4 times. The stock trades at a 57.6% discount to its sector, while its trailing valuation is about 36% below its historical average. The hospital operator has a market cap of about $10.6 billion.

AES Corporation, an electricity generation and utilities company, is another stock trading at a substantial discount. Its forward P/E stands at 6.6 times against the utilities sector average of 15.5 times, representing a discount of 57.4%.

Its trailing P/E of 5.7 times is also nearly 75% below its five-year average of 22.86 times, making it one of the most heavily discounted stocks relative to its own valuation history.

Aircraft leasing company AerCap Holdings trades at 9.6 times forward earnings compared with the industrial sector's 22.5 times, a discount of 57.3%. However, its trailing P/E is only about 5% below its five-year average, suggesting its current valuation is relatively close to its own historical levels.

Fidelity National Information Services, a financial technology company, trades at 6.3 times forward earnings against the financial sector average of 14.1 times, representing a discount of 55.3%. Its trailing P/E of 6.2 times is substantially below its five-year average of 93.16 times. However, such a large historical valuation difference warrants caution because unusually high P/E ratios can arise when reported earnings are temporarily depressed.

Telecommunications giant AT&T, with a market cap of $144.4 billion, trades at a forward P/E of 8.9 times, a discount of 52.2% to its sector. Interestingly, AT&T's trailing P/E of 11.6 times is around 14.5% above its own five-year average of 10.13 times. This indicates that while the stock appears inexpensive relative to its sector, it trades at a premium to its own historical earnings multiple.

Payments technology company Fiserv trades at a forward P/E of 7.1 times, nearly 49.7% below the financial sector average. Its trailing valuation is also about 66.8% below its five-year average.

Real estate investment trust VICI Properties features on the list with a forward P/E of 8.5 times, compared with the real estate sector average of 16.8 times. The stock trades at a discount of 49.4%, with a market capitalisation of approximately $27.5 billion.

Utility company PG&E Corporation trades at 7.9 times expected earnings against its sector average of 15.5 times, a discount of 49%. Its trailing valuation is about 40.5% below its five-year average.

Pharmaceutical company Bristol-Myers Squibb completes the list, trading at 9.8 times forward earnings against the healthcare sector's 18.4 times, representing a discount of 46.7%. Its market cap stands at $128.8 billion. The company also trades at a trailing P/E of 14 times, nearly 24% below its historical average.

However, lower earnings multiples alone do not establish that a stock is undervalued. Differences in earnings growth, debt, regulatory exposure and business risks can explain why some companies trade at lower valuations than their sector peers.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here.