We recently published a list of Goldman Sachs Value Stocks: Top 12 Stock Picks. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against other Goldman Sachs value stocks to invest in.

As we recently discussed in another article, growth stocks are massively overvalued and trading at significant premiums, which is why investment firms advise investors to concentrate on value stocks. Near the end of March 2025, artificial intelligence stocks that had taken the market over by storm faced losses, while undervalued stocks gained momentum. Similarly, hedge fund managers believe that now is the time to invest in value stocks, with cheap equities available across all industries. Banks, energy, consumer durables, healthcare, and media companies offer lucrative investment opportunities.

So, what is value investing? Matthew Fine, portfolio manager at Third Avenue Management, describes it as identifying companies trading at a notable discount to a conservative estimate of their true value. These opportunities often arise when a business, industry, or region faces challenges that cause investors to overreact and assume current difficulties will persist long-term. This pessimism creates chances to invest at attractive valuations. While broader equity markets currently appear overvalued, largely driven by the United States, Third Avenue sees overlooked value in many individual companies. Despite a rocky economy, the fund manager believes many quality businesses have become even cheaper, offering compelling opportunities for patient investors. However, the key is to avoid buying a company that seems cheap just because it has temporary advantages that might not last.

Warren Buffett is the king of value investing, and back in 2023, he commented in his annual shareholder meeting that “what gives you opportunities is other people doing dumb things”. Buffett’s Berkshire picks up stocks when others are panic-selling their holdings, and although the Oracle of Omaha understands that the world is rapidly changing, he still sees several value investing opportunities.

Overall, the stock market is in mayhem because of the uncertainty brought on by US trade wars and tariffs. However, institutional investors like Goldman Sachs align with the market perspective and have a thriving $634 billion portfolio. So, let’s take a look at the top Goldman Sachs value stocks.

Our Methodology 

To compile our list of Goldman Sachs’ top value stock picks, we searched the investment firm’s Q4 2024 portfolio, starting from the top and assessing the PE ratios as of April 11. From there, we chose the top 12 stocks with PE ratios of 25 or under as Goldman Sachs’ value picks. We have also mentioned the Q4 2024 hedge fund sentiment around the holdings for further insight. The list is ranked in ascending order of Goldman Sachs’ stake value.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Meta Platforms, Inc. (NASDAQ:META)

Goldman Sachs’ Q4 2024 Stake Value: $8,269,459,946

P/E Ratio as of April 11: 21.41

Number of Hedge Fund Holders: 262

Mark Zuckerberg’s Meta Platforms, Inc. (NASDAQ:META), with a P/E ratio of 21.41, ranks 2nd on our list of the Goldman Sachs value stocks. Piper Sandler analyst Thomas Champion assigned an Overweight rating on the stock, with a price target of $610. The analyst commended Meta’s strong ad checks and solid revenue growth, with Q2 projected to bring in $42.5 billion to $45.5 billion. While there are some concerns around e-commerce and China, Meta still looks financially healthy and undervalued, trading at a low PEG ratio, according to Champion.

On February 13, Meta Platforms, Inc. (NASDAQ:META) declared a $0.525 per share quarterly dividend, a 5% increase from its prior dividend of $0.50. The dividend was distributed on March 26, to shareholders listed by March 14.

Meta Platforms, Inc. (NASDAQ:META)’s most advanced AI models yet, Llama 4 Scout and Llama 4 Maverick, were introduced on April 5. These models are quick, efficient, and accessible for everyone, developed to power smarter apps and tools. There is a next-level model in progress called Llama 4 Behemoth that was created to outsmart some of the top AI systems out there.

According to Insider Monkey’s fourth quarter database, 262 hedge funds held long positions in Meta Platforms, Inc. (NASDAQ:META), compared to 235 funds in the earlier quarter. Rajiv Jain’s GQG Partners was a notable stakeholder of the company, with 9.3 million shares worth $5.45 billion.

Overall, META ranks 2nd among the Goldman Sachs Value Stocks: Top 12 Stock Picks. While we acknowledge the potential of value stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.