With the Federal Reserve keeping rates at 3.50%-3.75% and signaling a “higher for longer” path, many growth-driven stories have lost some of their shine while solid value stocks have come back into focus. Higher borrowing costs and sticky inflation can reward companies that already trade on lower P/E and P/B ratios, generate cash today, and sit in essential parts of the economy. This article highlights 3 large-cap value stocks from our screener that are closely exposed to the latest Fed decision, which may help you decide which opportunities suit your approach to this new rate reality.

Ørsted (DNNG.Y)

Overview: Ørsted is a Denmark based renewable energy company that develops and operates offshore and onshore wind farms, solar farms, energy storage and combined heat and power plants, mainly across Europe, the United States and the Asia Pacific region.

Operations: Ørsted generates most of its revenue from Offshore activities at DKK 61.4b, with additional contributions from Bioenergy & Other at DKK 16.2b and Onshore at DKK 2.9b.

Market Cap: US$30.3b

Ørsted stands out in a higher rate world as a large renewable energy utility with value style characteristics. It is trading at a discount of about 21.5% to one fair value estimate and carries a lower P/S ratio than many peers. The company is currently loss making and funded entirely by higher risk external borrowings, and shareholders have been diluted recently, so investors need to be comfortable with elevated financial risk. Analysts currently expect earnings and return on equity to improve within roughly three years, and management is reshaping the portfolio by selling some onshore assets to focus on core offshore projects.

Ørsted’s mix of discounted valuation, losses and higher risk borrowings raises big questions about what the market is missing and whether the 3 key rewards and 1 important major warning sign reveals a twist investors are underestimating

Ørsted (DOGE.F)

Overview: Ørsted is a Denmark based renewable energy company that owns, develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage projects, and combined heat and power plants across Europe, the United States, and the Asia Pacific region.

Operations: Ørsted generates most of its revenue from Offshore activities at DKK 61.4b, with additional contributions from Bioenergy & Other at DKK 16.2b and Onshore at DKK 2.9b.

Market Cap: US$30.3b

Ørsted stock offers an interesting mix of large cap scale, a lower P/S ratio than many renewable peers, and exposure to assets that some investors view as core infrastructure in a high rate world where cash generation and resilience matter more. At the same time, the company is currently loss making, funded entirely by higher risk external borrowings, and has recently diluted shareholders. This raises questions about how well its balance sheet can support its growth plans. The decision to dispose of US onshore assets after already agreeing to sell part of its European onshore business suggests a sharper focus on offshore projects. It also leaves investors weighing near term earnings pressure, recent underperformance versus the US Renewable Energy industry, and what the market may be missing about the company’s path back to sustainable profitability.

Ørsted’s mix of discounted valuation, portfolio reshaping and balance sheet pressure has many investors split, but the real story sits inside the 3 key rewards and 1 important major warning sign and how one overlooked risk could flip the script

Oshkosh (LSE:0KDI)

Overview: Oshkosh Corporation is a US based manufacturer of purpose built vehicles and equipment, supplying aerial work platforms, telehandlers, defense tactical trucks, fire and emergency vehicles, refuse collection trucks, airport support equipment and related parts and services worldwide.

Operations: Oshkosh generates most of its revenue from the Access segment at US$4.5b and Vocational at US$3.7b, with Transport contributing US$2.1b and Corporate and Other US$115m.

Market Cap: US$8.6b

Oshkosh stock offers a mix of large cap scale, value style P/E, and exposure to essential spending on construction gear, defense vehicles and emergency fleets. This profile can be especially relevant while the Federal Reserve keeps rates higher for longer. The shares trade well below one estimate of fair value, even though earnings have been forecast to grow at double digit rates and supported by long term demand for access equipment and defense transport. At the same time, funding relies on external borrowing and recent earnings declined, with Q1 2026 net income down from the prior year. For investors, the key question is whether that combination of low valuation, mixed earnings and high rate sensitivity hides a more compelling story than the headline numbers suggest.

Oshkosh’s mix of value style P/E, large cap scale and essential vehicle demand could be masking a bigger story about where earnings go next. Reviewing the analyst forecasts for Oshkosh may reveal the key twist investors are missing.

The three large cap value stocks in this article are just a starting point, and the full Large-Cap Value Stocks screener highlights four more companies with equally compelling narratives that you have not seen yet. Use Simply Wall St to identify and analyze the specific catalysts, balance sheet strength, and valuation stories that matter to you so you can focus on the highest conviction opportunities in this large cap value space.

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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.