3 Low-P/E Stocks That Look Cheap as the S&P 500 Trades Near Record Highs

Key Points

• Sohu.com, Onity Group and TriMas are trading at unusually low headline earnings multiples despite signs of underlying business strength.
• Each company has a different reason for looking cheap, from one-time accounting effects to operational or industry-specific pressures.
• For value investors, the key question is whether improving fundamentals can eventually outweigh the factors keeping these stocks discounted.

Record highs in the S&P 500 may be good news for many, but perhaps not as much for value investors hunting for bargains at a time when valuations are becoming more and more elevated. The result is that some of the biggest winners in the market also have price-to-earnings (P/E) multiples far above their long-term averages, forcing value-focused investors to take a chance on companies despite valuations outside of their comfort zone.

This doesn't mean that deals don't still exist, however. While it may be increasingly rare, there are still firms that are of a high quality but that trade at low P/E ratios. Not the result of deteriorating business models, the companies below may be value prospects with the capacity to grow—their expanding profitability is evidence that they are solid investment targets that are just priced below what they may be worth.

Sohu.com Shows a Unique Mix of Value and Underlying Strength

Chinese internet and online gaming giant Sohu.com Inc. NASDAQ: SOHU trades at just 1.6x earnings, making it one of the most attractive bargains in the electronic gaming and media space. Indeed, a multiple that low might deter some investors who assume profits are on the verge of collapse. To the contrary, though, recent earnings suggest that the company's top- and bottom-line performance is trending in the other direction.

Revenue climbed by about 7% year over year (YOY) for Q2 2026, driven by strength in Sohu.com's online gaming business. This same segment generated $55 million in operating profit for the quarter, a sign of its strong profitability. And speaking of profitability, Sohu.com improved its bottom line materially this quarter, with GAAP net income for the period compared to a sizable loss last year at the same time. Yes, the bottom line did benefit from a tax adjustment, but Sohu.com's underlying operations are solid enough to beat management expectations.

With a healthy balance sheet that has facilitated some noteworthy share repurchases in recent quarters, SOHU stock has plenty of reasons to continue its upward trend after already rising by over 7% in the last month.

Servicing Headwinds May Obscure Onity's Originations and Revenue Growth

Onity Group NYSE: ONIT is a mortgage loan servicer that has undergone a significant transformation in the last several years, improving its servicing operations and expanding its reach. Despite a higher interest rate environment that could increase the value of mortgage servicing rights, ONIT shares are trading down more than 21% year to date (YTD).

One reason for this is that the company's servicing adjusted pre-tax income has declined significantly, dropping by more than 60% YOY for the latest quarter amid changes to interest rates, geopolitical instability, market volatility, and similar. However, revenue climbed by almost a quarter YOY and fund originations surged by 64% over the same period to a record of $15.5 billion in Q2 2026.

With a P/E ratio of about 2.3, ONIT shares trade at a valuation dramatically lower than the financials sector average of more than 29. This may be why analysts see almost 52% in potential upside for the stock. While servicing headwinds remain, revenue and origination growth are standouts.

TriMas Sees Profitability Wins Despite Top-Line Challenges

Trading at 1.6x earnings, TriMas Corp. NASDAQ: TRS is an industrial company making a variety of packaging and other end products for clients across multiple industries. It has flown under the radar even as it delivers steady earnings improvement. In the latest quarter, profitability wins included 1.6% YOY sales improvement, a 29% boost to operating profit, and a 180-basis-point operating margin gain. Adding in cost reductions and share repurchases, the company has made real strides in bottom-line performance.

On the other hand, revenue struggles combined with margin difficulties in certain portions of TriMas's business have weighed on TRS shares, prompting a nearly 4% decline over the last month. Investor concerns about manufacturing demand amid wider economic uncertainty have likely not helped, but it could be that those concerns are already priced in, given the company's low P/E multiple.

TriMas has raised the low end of its full-year adjusted earnings guidance to a range of $1.60 to $1.70 per share, while also keeping expectations of 3% to 6% sales growth and substantial operating margin improvement. If these forecasts prove accurate, the firm may be positioned to turn around its recent share price dip and reenergize a rally. Across Wall Street, three out of four analysts find shares to be a Buy, suggesting optimism about this potential trajectory going forward.

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