With inflation running at 4.2%, a hawkish Fed chair talking about higher rates, and energy costs pushed up by geopolitical conflict, value stocks are back under the spotlight. Higher borrowing costs and pricing pressure can reshuffle which companies look attractively priced and which look stretched. This article focuses on a U.S. Value Stocks screener that filters for relatively low P/E and P/B ratios in larger, established businesses. It will walk through 3 stocks that appear positively exposed to the current mix of tighter policy risks, A.I. supply chain disruptions, and ongoing energy driven inflation.

Peabody Energy (BTU)

Overview: Peabody Energy is a long-established coal producer that supplies thermal coal for power generation and metallurgical coal for steelmaking, operating mines in Australia and the United States to serve electricity utilities, industrial users, and steel manufacturers.

Operations: Peabody Energy generates most of its revenue from the Powder River Basin at about US$1.2b and Seaborne Metallurgical at about US$1.1b, followed by Seaborne Thermal at about US$840.9m and Other U.S. Thermal at about US$723.1m, with smaller contributions from Corporate and Other.

Market Cap: US$2.9b

Peabody Energy appears in the U.S. Value Stocks screener as a coal producer that sits directly at the intersection of higher inflation, tight power markets, and A.I. driven electricity demand. The stock currently screens as significantly undervalued on P/S. At the same time, investors need to weigh meaningful risks, including long term pressure from decarbonisation policies, recent net losses, and a capital structure that relies on external borrowing and new convertible notes. With recent policy support for coal, shifting power demand patterns, and active balance sheet management, there is more to the Peabody Energy story than current headlines reveal.

Peabody Energy’s low P/S and exposure to tight power markets suggest the market may be missing a key angle. Start with the Peabody Energy financial health report and see how its balance sheet could reshape the story.

SunCoke Energy (SXC)

Overview: SunCoke Energy is a coke producer that supports steelmaking by supplying blast furnace and foundry coke, while also running cokemaking plants, logistics terminals, and a wide range of on site material handling and scrap processing services for steel, coal, power, and other industrial customers in the United States and internationally.

Operations: SunCoke Energy generates most of its revenue from Domestic Coke at about US$1.6b, with additional contributions from Industrial Services at about US$272.6m and Corporate and Other at about US$35.9m, and it reports around US$1.8b of revenue from the United States and US$84.2m from international markets after intersegment eliminations.

Market Cap: US$710.2m

SunCoke Energy sits in a part of the market that can benefit when inflation, higher energy prices, and sector rotation push investors toward real asset and materials exposure. Its coke and industrial services are closely tied to ongoing steel demand. The stock screens as undervalued on P/S while analysts expect earnings to return to profitability. Combined with a 5.73% dividend yield, this puts cash flow and income potential in clear focus. At the same time, SunCoke carries real risks, including recent losses, pressure on logistics volumes, and reliance on a handful of large customers. For investors watching how a more hawkish Fed and firm inflation shape the value trade, SunCoke Energy offers a complex mix of opportunities and fault lines that deserves a closer look.

SunCoke Energy’s mix of P/S value, coke exposure to steel, and a 5.73% yield hints at a story the headline numbers do not fully capture. Scan the 3 key rewards and 2 important warning signs (1 is major!) to see what might be quietly driving the next chapter.

Patterson-UTI Energy (PTEN)

Overview: Patterson-UTI Energy provides onshore drilling, completion, and drilling products to oil and gas producers, combining contract and directional drilling, hydraulic fracturing, wireline, cementing, and tool rental services across North America and select international markets.

Operations: Patterson-UTI Energy generates most of its revenue from Completion Services at about US$2.8b and Drilling Services at about US$1.5b, with additional revenue from Drilling Products at about US$337.8m and Other Operations at about US$23.3m.

Market Cap: US$3.9b

Patterson-UTI Energy operates at the intersection of higher energy prices, rising inflation, and value-focused investing, with a full drilling and completion toolkit that can benefit when producers keep rigs operating despite rate uncertainty. The stock trades on a low P/S relative to the Energy Services industry and analysts have highlighted potential for earnings to improve from current losses. Investors, however, may still weigh factors such as softer drilling activity, capital-intensive technology upgrades, and a dividend that is not yet covered by earnings. Recent analyst target changes and commentary around stronger Q2 EBITDA and fracturing pricing illustrate how quickly sentiment can adjust. A key consideration is whether Patterson-UTI’s automation initiatives and lower-emission fleets can translate this backdrop into durable cash returns before the cycle cools again.

Patterson-UTI Energy’s low P/S and push into automation and lower emission fleets hint that the headline losses may not tell the full story. The analyst forecasts for Patterson-UTI Energy reveals what the market might be missing.

The three stocks in this article are only the starting point, as the full U.S. Value Stocks screener surfaced 26 more companies with similarly compelling narratives that do not show up in headline metrics alone, which you can review in the U.S. Value Stocks screener. Use Simply Wall St to identify and analyze the specific catalysts, financial traits, and narrative angles that matter most so you can focus on the highest conviction value ideas in this part of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.