Value Investing Is Back! 3 Stocks With Strong Fundamentals to Buy Now

Core Insights - Increased volatility on Wall Street has led investors to consider value stocks, which historically outperform during downturns and provide stability amid market fluctuations [1][3] - Goldman Sachs highlights that value stocks have more stable cash flows, making them less sensitive to interest rate changes, with the Vanguard Value Index Fund ETF returning over 8% this year [2] Group 1: Darling Ingredients (DAR) - Darling Ingredients operates in the bioenergy and specialty ingredients sector, focusing on renewable diesel, which is expected to grow as carbon reduction efforts increase [4] - In Q1 2024, Darling reported revenues of $1.4 billion, down from $1.8 billion the previous year, with net income dropping 56% due to lower product pricing [5] - Despite challenges, management's initiatives, such as starting sustainable aviation fuel production in late 2024 and acquiring Miropasz, are expected to enhance revenue [6] - DAR stock has decreased over 27% in 2024, but analysts predict improved earnings in 2025, with a 12-month price forecast suggesting a 57% upside potential [7] Group 2: General Motors (GM) - General Motors is transitioning towards electric vehicles and autonomous driving, with a strong Q1 2024 performance showing revenues of $43 billion, up 7.6% year-over-year [8] - The company raised its full-year earnings guidance and announced a $6 billion stock repurchase plan, enhancing shareholder value [9] - GM stock has gained 28% year-to-date, trading at favorable multiples, with analysts projecting a 12-month price target indicating nearly 13% upside [10] Group 3: Organon (OGN) - Organon is a healthcare company with a strong product lineup and solid financials, appealing to income-focused investors due to its attractive dividend yield [11] - In Q1 2024, Organon reported revenues of $1.6 billion, a 7% growth, with adjusted EPS increasing by 13% year-over-year [12] - The company's women's health and biosimilars divisions are experiencing significant growth, with the biosimilars market projected to grow at a CAGR of over 17% from 2023 to 2028 [14] - OGN stock has risen 45% since January, with a substantial dividend yield and a favorable valuation, supported by a 12-month price target suggesting a 5.5% upside [15]