Volatility has increased on Wall Street while tech stocks are taking a breather. As a result, many investors are eyeing value stocks to buy, which may hold considerable potential for future returns. Research indicates that value stocks often outperform both the market average and growth stocks during downturns, offering stability amid market volatility. Although they may not promise rapid growth as some tech stocks, value stocks typically provide consistent returns over time.

Furthermore, Goldman Sachs suggests “value stocks’ cash flows are typically more evenly spread out, and so are less sensitive to changes in interest rates.” So far this year, the Vanguard Value Index Fund ETF Shares (NYSEARCA:VTV) has returned over 8% and offers a dividend yield of close to 2.4%. Meanwhile, the S&P 500 index, which represents the broader market, has advanced around 14% and comes with a dividend yield of 1.3%.

Many analysts highlight that the current sticky levels of inflation mean value stocks may continue to shine in the months ahead. Therefore, including both value and growth stocks in long-term portfolios may be appropriate for most retail investors. With that in mind, here are three top value stocks to watch in July 2024.

Darling Ingredients (DAR)

First on today’s list of value stocks to buy is Darling Ingredients (NYSE:DAR), which is part of the broader bioenergy and specialty ingredients industry. The company’s operations are closely tied to the renewable diesel market, which is expected to grow substantially as governments and industries seek to reduce carbon footprints. DAR is also a global leader in converting rendered fats and recycled meat products into ingredients for food, pharmaceuticals and personal care products.

For the first quarter of 2024 Darling reported revenues of $1.4 billion, down from $1.8 billion last year. Net income dropped 56%, mainly due to lower finished product pricing and decreased fat prices. Diluted EPS fell to 50 cents from $1.14 per share. Much of this decline was attributed to lower earnings from Diamond Green Diesel (DGD), its joint venture with Valero Energy (NYSE:VLO). We should note that DGD is one of the largest producers of renewable diesel globally.

Despite setbacks, investors have been crediting positive steps taken by Darling Ingredients’ management as well. For example, DGD should begin sustainable aviation fuel (SAF) production in late 2024, enhancing the company’s revenue and profitability. Meanwhile, the acquisition of Miropasz added three poultry rendering plants. The company has also seen improvements in its core specialty ingredient business globally.

DAR stock has dropped over 27% in 2024. Yet analysts anticipate improved earnings in 2025, driven by sustainable aviation fuel sales, rising low-carbon fuel standards credit prices and favorable biofuels tax changes. With a forward earnings multiple of 10.9 times and a price-to-sales (P/S) ratio of 0.9x, I believe DAR is attractively valued. Moreover, analysts’ 12-month median price forecast of $57.85 suggests a 57% upside potential.

General Motors (GM)

Another top pick among the best value stocks to buy is General Motors (NYSE:GM). Renowned for its iconic brands like Chevrolet and Cadillac, GM is pivoting towards electric vehicles (EVs) and autonomous driving technology, particularly through its self-driving car unit, Cruise.

In its latest earnings statement, GM reported robust financial performance for the first quarter of 2024. Total revenues rose to $43 billion, up 7.6% from the first quarter of 2023. Diluted EPS of $2.62 exceeded last year’s result by 18.6%. Additionally, GM raised its full-year earnings guidance and announced a new authorization to repurchase up to $6 billion of outstanding stock, creating shareholder value.

Moreover, GM’s robust cash flow enables substantial investments in growth initiatives, particularly in the EV sector. It formed a joint venture with LG Chem to build battery factories in North America. This strategic move secures a critical part of the EV supply chain.

GM stock has gained 28% year-to-date (YTD) and offers a 1% dividend yield. Trading at 4.8 times forward earnings and 0.4 times sales, the shares are favorably priced. Analysts have set a 12-month median price target of $52 for GM stock, suggesting an upside potential of nearly 13% from the current levels.

Organon (OGN)

We conclude today’s discussion of value stocks to buy with the healthcare company Organon (NYSE:OGN), offering a robust product lineup and solid financials. Additionally, the attractive dividend yield makes OGN stocks appealing for income-focused portfolios.

Organon had a strong start to 2024, as evidenced by its first quarter earnings. The company’s revenues soared to $1.6 billion, a 7% growth at constant currency across all three primary franchises. Adjusted EPS climbed to $1.22, marking a 13% YOY increase.

The company’s growth trajectory looks particularly bright in its women’s health and biosimilars divisions. Women’s health features key products like Nexplanon/Implanon NXT and is enjoying continued, steady expansion. This segment is a core focus for Organon, addressing critical needs in contraception, fertility and other gynecological conditions.

Meanwhile, the niosimilars arm, with offerings such as Brenzys and Renflexis, saw a remarkable 46% growth in the first quarter of 2024. Biosimilars offer cost-effective alternatives to expensive biologics. In addition, their adoption is on the rise due to increasing regulatory approvals and physician acceptance. The global biosimilars market is projected to grow at a compound annual growth rate (CAGR) of over 17% from 2023 to 2028. In other words, this segment presents a lucrative avenue for Organon’s expansion.

OGN stock has rallied 45% since January, complemented by a substantial 5.4% dividend yield. Currently, shares trade at an enticing forward P/E ratio of 4.8x and P/S valuation of 0.9x. Finally, Wall Street analysts remain bullish, with a 12-month median price target of $22.00 for OGN stock, or a 5.5% potential upside.

On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.