10 Deep Value Stocks to Buy Now

2. Organon & Co. (NYSE:OGN)

Fwd. P/E: 4.0

Dividend Yield: 7.3%

Number of Hedge Fund Holders: 28

Organon & Co. (NYSE:OGN) is a global healthcare company with a strong focus on women’s health, biosimilars, and established brands. With a diverse portfolio of over 70 medicines and products, it serves a broad market, including drug wholesalers, retailers, hospitals, government agencies, and managed healthcare providers.

Originally spun off from Merck & Co. Inc. (NYSE:MRK) in 2021, Organon & Co. (NYSE:OGN) has been expanding its global presence while leveraging its growing biosimilars business to drive revenue diversification. However, the company is currently navigating some headwinds, including the loss of exclusivity (LOE) for Atozet in Europe, pricing pressures, and foreign exchange fluctuations. To counter these challenges, the company is aggressively implementing cost-saving initiatives, targeting $200 million in operating savings for 2025. At the same time, it is looking to offset Atozet’s LOE impact with strong growth from key products like Vtama, Emgality for fertility, and Nexplanon.

Despite these hurdles, Organon & Co. (NYSE:OGN) continues to generate robust cash flows, with 2024 free cash flow (before one-time costs) coming in at $967 million. The stock is currently trading near its 52-week lows, making it an intriguing opportunity for value investors. Adding to its appeal, Organon offers a hefty dividend yield of over 7.0%, making it an income-focused play in the healthcare sector.