3 Stocks Offering Strong Value and Stability

Key Points

• Three companies that suggest a strong value prospect for 2025 include Danaher, Magnite, and Diebold Nixdorf.
• These firms may be enticing to investors looking for value plays amid market instability.
• While Danaher shares have dipped in the last few months, Magnite's have rallied, and Diebold's have performed roughly in line with the broader market.

Though not as safe a bet as safe-haven assets like precious metals, value stocks are nonetheless an enticing option for investors when the market gets bumpy. An undervalued company that has excellent fundamentals but a less-than-stellar recent stock performance history is often better positioned to benefit during periods of volatility than growth names with less of a track record of success.

Life sciences and diagnostics firm Danaher Corp. NYSE: DHR is well established across multiple industries, giving it numerous pathways to growth, while sell-side advertising platform Magnite Inc. NASDAQ: MGNI similarly has access to many media properties and channels, insulating it from issues affecting any of these areas individually. Finally, Diebold Nixdorf NYSE: DBD provides banking and retail solutions to a host of clients. All three of these firms have various value metrics flashing and may be good candidates for value investors looking to buy and hold names this year.

Why Danaher's Dip Is a Buying Opportunity 

Danaher shares have fallen about 16% in the last year as of February 20, 2025, although they were actually up until mid-October before falling about 23% since that time. Most recently, the stock fell in January after a rare disappointing earnings report. The drop in price has brought Danaher to a forward P/E ratio of 2.6, making it stand out as a potential value buy.

However, a low P/E ratio is only helpful to investors if a company is likely to improve its share price in the future, and fortunately, Danaher offers numerous reasons for optimism. For one thing, despite tepid 2% year-over-year revenue growth for the latest quarter, the company's free cash flow of $5.3 billion remains very strong. Likewise, its operating margins for both its biotechnology and life sciences businesses increased year-over-year, signaling improving efficiency.

Danaher has also engaged in an aggressive share buyback campaign, noting in its full-year 2024 financials that it paid nearly $6 billion last year in payments for repurchase of common shares. Together with its recently announced investment in Innovaccer, a healthcare AI firm, it appears the company is executing a long-term strategy to boost its value proposition. Investors willing to be patient may find that the recent dip presents a solid opportunity to buy.

Despite Rally, Magnite Appears to Be a Good Deal

In contrast to Danaher's stock price stumbles in recent months, Magnite shares have far outpaced the market in the last year, climbing by almost 85% in the 12-month period to February 20, 2025. Still, it appears that the stock may still have room to grow based on a relatively modest P/S ratio of just over 4. Further, analysts are broadly optimistic about Magnite shares, with 12 out of 13 rating it a Buy.

All of these ratings pre-date Magnite's recent confirmation that it has entered a partnership with the social media platform X, which has struggled with advertisers since Elon Musk's 2022 purchase of the platform, then known as Twitter. Magnite's involvement should help X advertisers better cater their ad buys. This could be especially important as Musk has signaled his intent to make the platform an "everything app," including plans to launch a real-time payments service in partnership with Visa Inc. NYSE: V.

Missed Earnings Don't Hold Diebold Back

In its February 2025 earnings report, Diebold Nixdorf missed EPS estimates by 25 cents per share. However, investors didn't blink; shares remain up almost 29% in the last year as of February 20. This may be due to the company's strong value signs—its P/S ratio is just 0.5—and to the firm's impressive $452 million in adjusted EBITDA, above the high end of guidance.

Diebold also generated $109 million in free cash flow last quarter, the strongest quarterly performance in this area since the current iteration of the company was constituted almost a decade ago. This allows the firm flexibility to repurchase up to $100 million in stock, even as it reduced its overall debt load by some $338 million in the last year.

To be sure, Diebold faces challenges in 2025. The self-checkout tech space is crowded and the company has had a difficult time achieving market share. Retail business, in general, continues to face headwinds due to lingering inflation and other concerns. Further, unfavorable currency conditions could negatively impact revenues as well. Still, despite these challenges, Diebold presents a compelling case for investors looking to buy and hold.