In the ever-evolving financial markets, savvy investors are always on the lookout for golden opportunities that offer great value. While the headlines often spotlight stocks that are soaring to new heights, some of the best investment prospects lie in stocks trading below their historical valuations. These hidden gems, often overshadowed by more exciting counterparts, can offer substantial upside potential for those willing to dig a little deeper. In this article, we'll shine a light on three stocks that currently boast a Zacks Rank #1 (Strong Buy) rating, and are trading at a discount, presenting an enticing entry point for investors seeking both value and growth. Owens Corning ( Owens Corning OC Quick Quote OC - Free Report) is a global company specializing in the development, manufacture, and marketing of insulation, roofing, and fiberglass composite materials. Founded in 1938, the company's products have been used in a variety of industries, from construction and home improvement to transportation and electronics. The company's recognizable pink fiberglass insulation is iconic in the construction industry. Over the last 10 years Owens Corning stock has outperformed the broad market, compounding at an annual rate of 14.7%. Image Source: Zacks Investment Research With a Zacks Rank #1 (Strong Buy) rating, OC has seen some significant increases in its earnings estimates, with analysts unanimously upgrading expectations. Current quarterly earnings estimates have been revised higher by 27% and are forecast to grow 6% YoY to $3.78 per share. FY23 earnings estimates have been boosted by 20% and are expected to climb 5.6% YoY to $13.60 per share. Image Source: Zacks Investment Research Owens Corning is currently trading at a one year forward earnings multiple of 10.1x, which is below the industry average of 14.5x, and well below its 10-year median of 14.7x. With a long history of success, and EPS forecast to grow 7.9% annually over the next 3-5 years, OC looks like a very appealing addition to investors portfolios. Image Source: Zacks Investment Research Dr. Reddy’s Laboratories ( Dr. Reddy's Laboratories RDY Quick Quote RDY - Free Report) is a multinational pharmaceutical company based in India. Founded in 1984, it specializes in the production and distribution of a wide range of generic medications, active pharmaceutical ingredients (APIs), and proprietary products. The company operates in several key therapeutic areas, including gastroenterology, cardiology, and dermatology, among others. Dr. Reddy's has a significant global footprint, exporting its products to multiple countries and continuously expanding its portfolio to address diverse healthcare needs around the world. Dr. Reddy’s Lab has experienced some considerable revisions higher to its earnings estimates, significantly increasing the odds of near-term strength in the stock. Current quarter earnings estimates have increased by 15.8% over the last two months and are projected to grow 7.3% YoY to $0.88 per share. FY23 earnings estimates have been upgraded by 11.5% and are expected to grow 14.9% YoY to $3.79 per share. Image Source: Zacks Investment Research RDY is trading at a one year forward earnings multiple of 18.1x, which is below the market average of 20.6x, and below its 10-year median of 24.3x. Furthermore, its EPS are forecast to grow 9% annually over the next 3-5 years. Image Source: Zacks Investment Research Caterpillar ( Caterpillar CAT Quick Quote CAT - Free Report) is a global heavyweight in the manufacturing of construction and mining equipment, diesel and natural gas engines, industrial turbines, and diesel-electric locomotives. Founded in 1925 and headquartered in Deerfield, Illinois, Caterpillar has become synonymous with heavy machinery and has established a reputation for durability, reliability, and technological innovation. With its iconic yellow machinery seen on construction sites worldwide, Caterpillar serves a diverse range of industries and has a significant global presence, with products sold in nearly every country. Over the last 10 years Caterpillar stock has outperformed the broad market, compounding at an annual rate of 15.8%. Image Source: Zacks Investment Research Thanks to the persistently strong economy, and construction market, Caterpillar earnings estimates have been consistently revised higher over the last two months. The Manufacturing – Construction and Mining industry currently sits in the top 2% (5 out of 252) of the Zacks Industry Rank. Current quarter earnings estimates have been upgraded by 13.5% and are expected to grow 17.5% YoY to $4.64 per share. FY23 earnings estimates have been increased by 10.5% and are forecast to climb 43.2% YoY to $19.82 per share. Caterpillar is trading at a one year forward earnings multiple of 14.2x, below the market average of 20.6x, and below its 10-year median of 17x. With EPS forecast to grow 12% annually over the next 3-5 years, CAT appears to be an extremely compelling investment at current levels. Image Source: Zacks Investment Research Bottom Line Finding those that offer both quality and value can be a daunting task. However, by focusing on historical valuations, fundamental strength, and upward trending earnings revisions we've identified three stocks that currently stand out as exceptional bargains. While the market's ebbs and flows are unpredictable, investing in sound businesses at discounted prices has historically proven to be a winning strategy. As these companies continue to demonstrate resilience and growth potential, investors who seize this opportunity may be well-positioned to reap significant profits.