3 Great Value Stocks That Could Crush the S&P 500 This Year

Group 1: Kenvue - Kenvue is trading at a discount since its spin-off from Johnson & Johnson in summer 2023, presenting a potential value investment opportunity [3] - The company needs to improve performance in its skin health and beauty segment, while maintaining growth in self-care and essential health segments [4] - Recent marketing investments have led to a 2.6% organic sales growth in the skin health and beauty segment in Q4, indicating potential for further growth in 2025 [5] - Kenvue's current dividend yield is 3.5%, enhancing its attractiveness for value investors [5] Group 2: 3M - 3M has faced disappointing growth but is undergoing a recovery with new management focusing on restructuring and operational improvements [6][7] - The restructuring includes spinning off the healthcare business, cutting unprofitable product lines, and enhancing go-to-market strategies, which have led to margin expansion [7][9] - Planned operational improvements aim to enhance profitability and set the stage for long-term growth, appealing to value investors [9] Group 3: Devon Energy - Devon Energy is positioned well in the oil and natural gas market, with management forecasting at least $3 billion in free cash flow if oil averages$70 per barrel in 2025 [11] - This free cash flow represents approximately 12.7% of Devon's market cap of $23.6 billion, indicating strong potential for dividend payments [11] - The company plans to allocate 30$0.96 per year [12] - Devon's operational improvements and a 15% increase in feet drilled position it well for 2025, making it an attractive value stock if oil prices remain stable [13]