Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor. The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
This distinction between true value and value traps can challenge even the most skilled investors. Luckily for you, we started StockStory to help you uncover exceptional companies. Keeping that in mind, here is one value stock trading at a big discount to its intrinsic value and two best left ignored.
Two Value Stocks to Sell:
Tyson Foods (TSN)
Forward P/E Ratio: 13.9x
Started as a simple trucking business, Tyson Foods (NYSE: TSN) is one of the world’s largest producers of chicken, beef, and pork.
Why Do We Avoid TSN?
- Sales stagnated over the last three years and signal the need for new growth strategies
- Gross margin of 7.2% is an output of its commoditized products
- Earnings per share fell by 22.1% annually over the last three years while its revenue was flat, showing each sale was less profitable
At $53.18 per share, Tyson Foods trades at 13.9x forward P/E. To fully understand why you should be careful with TSN, check out our full research report (it’s free for active Edge members).
Guess (GES)
Forward P/E Ratio: 11.6x
Flexing the iconic upside-down triangle logo with a question mark, Guess (NYSE: GES) is a global fashion brand known for its trendy clothing, accessories, and denim wear.
Why Do We Think GES Will Underperform?
- Muted 7.3% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Guess is trading at $16.92 per share, or 11.6x forward P/E. Read our free research report to see why you should think twice about including GES in your portfolio.
One Value Stock to Buy:
NCR Atleos (NATL)
Forward P/E Ratio: 7.3x
Spun off from NCR Voyix in 2023 to focus exclusively on self-service banking technology, NCR Atleos (NYSE: NATL) provides self-directed banking solutions including ATM and interactive teller machine technology, software, services, and a surcharge-free ATM network for financial institutions and retailers.
Why Are We Bullish on NATL?
- Additional sales over the last two years increased its profitability as the 82% annual growth in its earnings per share outpaced its revenue
NCR Atleos’s stock price of $35.41 implies a valuation ratio of 7.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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