Selling value stocks as they mature and rotating into new discounts - what are your favorite discounts to start 2026?

Original Reddit post

Value investor rotating matured positions into deeply discounted, high-dividend stocks for 2026, listing FMC, KHC, TU, NOMD, and CPB as favorites.

FMC — LONG The author views FMC as a 'blood bath' trading at roughly a 60% discount with a dividend over 10%, and believes the stock is close to bottoming. The thesis is a deep-value contrarian bet on a beaten-down moaty name, with the stated risk being that it is 'a mess' and the bottom may not yet be in.

FMC: it’s a mess but I love buying blood baths and believe we are close to the bottom. 60% discount - div over 10%

KHC — LONG The author sees KHC as a value play trading at a 35% discount with a dividend over 6%, and believes an eventual return to $40+ is very possible in the coming years. The mechanism is a re-rating of a slowly declining moaty consumer staple, with the stated risk being the multi-year downtrend.

KHC: slowly dropping the last couple years, I believe an eventual return to $40+ very possible in the coming years. 35% discount - div over 6%

NOMD — LONG The author views NOMD as a solid value play at a 30% discount with a dividend over 5%, expecting a cost-saving and buyback plan to drive an eventual turnaround. The mechanism is operational cost savings plus share buybacks leading to a re-rating.

NOMD: A solid cost-saving and buyback plan should lead to an eventual turnaround. 30% discount - div over 5%

CPB — LONG The author sees CPB as a big value play with low sentiment, trading at roughly a 50% discount with a dividend over 5%. The stated risk is that a turnaround could take a while.

CPB: low sentiment and big value, tho a turnaround could take a while. 50% undervalued - div over 5%