A handful of mega-cap stocks tend to dominate investor attention—and to drive the S&P 500's overall performance every year. But there’s still opportunity in the overlooked corners of the market. Investors aiming to uncover the next big winner should consider combining two key factors: attractive valuations and strong Wall Street support.
The three stocks below stand out on both fronts, delivering on value metrics while also garnering interest from analysts via a large number of bullish ratings and optimistic price target estimates.
GFL Stock Rebounds as Analysts Project Growth in 2026
GFL Environmental Inc. (NYSE: GFL) is an environmental services company providing a variety of waste management and soil remediation services. By serving the residential, commercial, and industrial spaces, GFL maintains a broad portfolio of clients and steady business despite fluctuations in the wider market.
Still, external headwinds like commodity prices and economic factors impacting construction volumes have caused GFL shares to trend downward for much of the year, falling from July through November.
In recent weeks, though, the company has mounted a turnaround that has recovered much of that decline, and the stock is currently up marginally year-to-date (YTD).
The reversal may be due to the firm's latest earnings report, which highlighted a record adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 31.6% and a 6.3% acceleration in pricing thanks to improved volumes.
GFL continues to expand its reach with a string of merger and aquisition (M&A) activity, and executives see up to $6.6 billion in annual revenue for 2025 after a recent increase to full-year guidance.
With a price-to-earnings (P/E) ratio around 7, GFL remains undervalued relative to its peers. This makes it a prime target for investors, as analysts expect massive growth—projecting nearly 83% in earnings growth in the coming year and about 28% in possible upside.
AerCap Stock Trades Near Highs But Remains Undervalued
Aircraft leasing and financing firm AerCap Holdings N.V. (NYSE: AER) caters to airline clients and other aviation customers globally. Despite trading near a 52-week high after climbing by more than 45% YTD, AER's sub-7 P/E ratio may signal that the company is undervalued.
Shares flew higher in the last several weeks thanks to an excellent third-quarter earnings report, which highlighted AerCap's impressive fleet and utilization above 99%.
The firm is well prepared for fluctuations in demand, as it is sitting on some 1,200 spare aircraft engines and has confirmed a spare-engine pool deal that solidifies its position for several years to come.
AerCap beat on both earnings per share (EPS) and revenue in Q2, the result of the sale of 32 aircraft for about $1.5 billion. The company increased its full-year adjusted EPS guidance following the record sales.
Cash management is key in AerCap's industry, and the firm has also demonstrated its prudence in this area by achieving lower average debt costs. It's no surprise, then, that eight out of 10 analysts have a bullish view of AER shares.
Petrobras Offers High Dividend Yield and Undervalued Shares
Petróleo Brasileiro S.A. (NYSE: PBR), known as Petrobras, is a Brazilian state-owned oil and gas firm. The company's massive production in the third quarter allowed it to improve its adjusted EBITDA in spite of volatility in oil prices. Indeed, Petrobras has a uniquely potent combination of low production costs, an expanding portfolio of exports, and solid reserves.
For investors seeking a combination of value and passive income, Petrobras can deliver. The firm's dividend has surged in recent quarters, and it maintains a sustainable payout ratio despite a massive dividend yield of 8%.
Meanwhile, its P/E ratio is under 6, making it competitively valued relative to many of its peers in the energy industry.
Investors should beware that in early December 2025 trading was halted on shares of PBR amid pending corporate news.
It's worth keeping a close watch on these developments, as they may promote volatility in the near-term.
Still, PBR has a Moderate Buy rating overall based on four Buy and three Hold ratings from Wall Street analysts, and a forecast of about 16% in upside going forward.
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The article "These 3 Little-Known Stocks Are Analyst Favorites" first appeared on MarketBeat.