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 with little support.
Two Value Stocks to Sell:
ZoomInfo (GTM)
Forward P/S Ratio: 2.7x
Operating a platform it calls "RevOS" - short for Revenue Operating System - ZoomInfo (NASDAQ: GTM) provides sales, marketing, and recruiting teams with business intelligence and analytics to identify prospects and deliver targeted outreach.
Why Do We Steer Clear of GTM?
- Average billings growth of 2.3% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
At $10.03 per share, ZoomInfo trades at 2.7x forward price-to-sales. To fully understand why you should be careful with GTM, check out our full research report (it’s free for active Edge members).
Scorpio Tankers (STNG)
Forward P/E Ratio: 8.5x
Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum.
Why Are We Cautious About STNG?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.5% annually over the last five years
- Performance surrounding its total vessels has lagged its peers
- Earnings per share have dipped by 41.5% annually over the past two years, which is concerning because stock prices follow EPS over the long term
Scorpio Tankers’s stock price of $54 implies a valuation ratio of 8.5x forward P/E. If you’re considering STNG for your portfolio, see our FREE research report to learn more.
One Value Stock to Watch:
Deckers (DECK)
Forward P/E Ratio: 15x
Established in 1973, Deckers (NYSE: DECK) is a footwear and apparel conglomerate with a portfolio of lifestyle and performance brands.
Why Do We Like DECK?
- Steady constant currency growth over the past two years shows the company can pursue its global ambitions, even in uncertain economic times
- Share repurchases over the last five years enabled its annual earnings per share growth of 31% to outpace its revenue gains
- Rising returns on capital show management is finding more attractive investment opportunities
Deckers is trading at $96.66 per share, or 15x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% 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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