With the global markets seeming poised to suffer a significant downturn, investors should prepare for this possibility by targeting cheap value stocks to buy. According to Investopedia.com, value-based investments refer to securities that trade at a price lower than the fundamentals imply. Such factors include dividends, earnings, or sales.

Cheap value stocks contrast sharply with growth-centric names. While the latter enjoyed substantial momentum in 2021, at the time, the Federal Reserve accommodated such sentiments. Now that the central bank decisively pivoted to a hawkish monetary policy, growth names succumbed to massive pressure. While value plays also suffered, it’s broadly to a lower extent.

Unusually, the market decides, for whatever reason, to harshly penalize certain companies over others. For contrarian investors, the red ink in the below cheap value stocks could represent a great opportunity considering the circumstances.

Danaher (DHR)

As a Fortune 500 science and technology innovator, Danaher (NYSE:DHR) designs, manufactures and markets professional, medical, industrial, and commercial products and services. Recently, the company garnered attention for its coronavirus testing service. However, management warned earlier this year that demand for its diagnostics business would wane once Covid-19 becomes endemic.

Still, an Edward Jones analyst saw circumstances differently, noting that “Covid-19 testing could become a regular or seasonal occurrence, much like flu tests are today.” The expert might have a point here. However, Wall Street doesn’t see it that way. On a year-to-date basis through the Oct. 6 session, DHR slipped nearly 12%.

While I understand some hesitation for Danaher, the bearishness might be stretching things too far. According to Gurufocus.com, DHR represents a modestly undervalued investment. The company features decent strength in its balance sheet. However, it comes alive in the growth and profitability departments, with several key performance metrics at least 60% or better against sector rivals. Therefore, DHR is an all-around solid candidate for buying cheap value stocks.

Amgen (AMGN)

An American multinational biopharmaceutical company, Amgen (NASDAQ:AMGN) focuses on discovering, developing, manufacturing, and delivering innovative human therapeutics. To get there, Amgen leverages some of the most groundbreaking tools in the business, including advanced human genetics. Recently, the company released encouraging data regarding one of its therapeutics targeting lung cancer.

Compared to other cheap-value stocks, Amgen performs comparatively well. Since the start of this year, AMGN has gained nearly 2%, which is much more than I can say about the major equity indices. Still, that seems a smooth performance, given the underlying relevancies.

Indeed, Gurufocus.com labels AMGN as modestly undervalued. Amgen offers a range of solid income statement metrics relative to the pharmaceutical industry. For instance, its three-year revenue growth rate stands at 8.3%, which ranks better than nearly 58% of its peers. However, the biggest highlights center on the company’s profitability indicators. A notable stat is its net margin of 25%, rated better than 92% of pharma competitors.

Thermo Fisher (TMO)

An American supplier of scientific instrumentation, reagents, and consumables, along with software services, Thermo Fisher (NYSE:TMO) essentially represents the stagehand of the broader scientific industry. While it might not be the star of the show, research and development couldn’t happen without Thermo Fisher’s product empire. Therefore, TMO should qualify as a strong value play under any circumstance.

However, at this juncture, it’s also one of the cheap value stocks to buy. In the price chart, TMO is down more than 16% against its January opener. Fortunately, the volatility has died off in recent sessions. Still, in the trailing month, TMO declined by 2%. Wall Street might be acting irrationally here.

According to Gurufocus.com, Thermo Fisher’s business is modestly undervalued. The company features a decent balance sheet, with an Altman Z-Score of 4.06, reflecting limited bankruptcy risk. More importantly, it commands excellent growth and profitability metrics.

TMO’s three-year revenue growth rate stands at 18%, better than over 63% of the competition. Additionally, its net margin of 17.4% ranks higher than nearly 80% of the medical diagnostics and research sector.

Honeywell (HON)

A multinational industrial conglomerate and applied sciences firm, Honeywell (NASDAQ:HON) essentially does everything. Honeywell integrates relevancies across the broader business ecosystem from the mundane (from pre-pandemic standards), such as N95 masks, to the most innovative sectors, such as aerospace. When faced with a possible recession, it might be helpful to have a jack-of-all-trades investment.

Wall Street broadcasts differing views like the other cheap value stocks. Since the start of 2022, HON has declined more than 15%. Part of the challenge associated with conglomerates is that they spread vulnerabilities across a wide surface. Therefore, investors may have lost their nerve with HON. Over time, though, former stakeholders might regret their decision.

Per Gurufocus.com, HON rates as modestly undervalued. Contrarian investors will appreciate its robust profitability metrics. For instance, Honeywell features a return on equity of 28%, superior to 91% of its peers.

As well it enjoys decent strengths in the balance sheet. For instance, its debt-to-EBITDA ratio pings at 2.3x, conspicuously lower than the industry median’s 3.4x.

Intuit (INTU)

One of my favorite ideas to discuss regarding cheap value stocks, tax, and accounting software provider Intuit (NASDAQ:INTU) deserves your attention. Primarily, my argument centers on the burgeoning gig economy. Several projections demonstrate that gross volume for this sector will increase noticeably in the years ahead. However, it’s essential to realize that employees and gig workers (independent contractors) have different tax profiles.

You can research the differences on your own, but the short of it is that gig workers’ taxes are pound-for-pound much more complicated than employees’ W2 filings. Therefore, Intuit represents a great fundamental value on the front and back ends (accounting and tax filings). Unfortunately, Wall Street doesn’t recognize this thesis, penalizing INTU with a 35% below-parity YTD performance.

Its loss is your gain. Per Gurufocus.com, Intuit commands a modestly undervalued business. This is one of the rare cheap value stocks to buy, which features overall strengths: a solid balance sheet, excellent growth metrics, and robust profitability indicators.

Target (TGT)

For the riskier portion of cheap value stocks, we’ll visit big-box retailer Target (NYSE:TGT). Frankly, I hesitated to include this company on this list. Generally, its rival, shall not be named, enjoys a “better” market performance, down 9% for the year. In sharp contrast, TGT hemorrhaged nearly 33% of its value during the same period.

Earlier this year, famous hedge-fund manager Michael Burry aimed at retailers like Target because of the bullwhip effect. Long story short, retailers overstated how much consumer demand will exist in the post-pandemic new normal.

Now, many companies have a massive excess-inventory problem. While I don’t necessarily disagree, it’s fair to point out that Target benefits from everyday acquisitions. Now, people go to Target not just for discretionary purchases but also for the necessities like food.

Interestingly, Gurufocus.com labels TGT as significantly undervalued. Believe it or not, against longer-term frameworks, Target enjoys solid growth and profitability metrics relative to its industry.

If you’re a dice roller, TGT could be an enticing idea among cheap value stocks to buy.

Visa (V)

Mathematically speaking, financial services provider Visa (NYSE:V) represents one of the cheap value stocks. Should you buy it, in any case? That’s where the narrative gets tricky. With Americans facing a possible recession with near-record levels of credit card debt, you’d imagine the first thing they will do is to try to get out of said liability. From that angle, V stock seems to tempt a bearish trajectory.

In the market, Visa shares fell more than 16% YTD, so understandably, investors have concerns. On the other hand, financial credit allows some households to stretch their budgets to make ends meet. It’s a cynical view, sure, but it happens. And that should theoretically bolster Visa’s business.

Now onto the math; Gurufocus.com considers V stock as significantly undervalued. Buying Visa stock is tempting because it just seems too cheap relative to the fundamentals. It features a favorable cash-to-debt ratio compared to industry norms. Regarding growth and profitability metrics, Visa owns excellent performance stats.

Again, it’s tricky, with the complexities stemming from possible macro headwinds. Still, Visa stands on the compelling ground if you’re a gambler.

On the date of publication, Josh Enomoto 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.