Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices. But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.
Separating the winners from the value traps is a tough challenge, and that’s where StockStory comes in. Our job is to find you high-quality companies that will stand the test of time. That said, here is one value stock with strong fundamentals and two climbing an uphill battle.
Two Value Stocks to Sell:
Tennant (TNC)
Forward P/E Ratio: 12.7x
As the world’s largest manufacturer of autonomous mobile robots, Tennant (NYSE:TNC) designs, manufactures, and sells cleaning products to various sectors.
Why Should You Sell TNC?
- Muted 3% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 2.1% annually
Tennant is trading at $78.73 per share, or 12.7x forward P/E. To fully understand why you should be careful with TNC, check out our full research report (it’s free for active Edge members).
Vestis (VSTS)
Forward P/E Ratio: 14.1x
Operating a network of more than 350 facilities with 3,300 delivery routes serving customers weekly, Vestis (NYSE:VSTS) provides uniform rentals, workplace supplies, and facility services to over 300,000 business locations across the United States and Canada.
Why Is VSTS Risky?
- Sales tumbled by 1.5% annually over the last two years, showing market trends are working against its favor during this cycle
- Capital intensity has ramped up over the last four years as its free cash flow margin decreased by 9.8 percentage points
- High net-debt-to-EBITDA ratio of 5× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Vestis’s stock price of $4.62 implies a valuation ratio of 14.1x forward P/E. Read our free research report to see why you should think twice about including VSTS in your portfolio.
One Value Stock to Watch:
CBIZ (CBZ)
Forward P/E Ratio: 14.5x
With over 120 offices across 33 states and a team of more than 6,700 professionals, CBIZ (NYSE:CBZ) provides accounting, tax, benefits, insurance brokerage, and advisory services to help small and mid-sized businesses manage their finances and operations.
Why Does CBZ Stand Out?
- Impressive 26.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Expected revenue growth of 20.1% for the next year suggests its market share will rise
- Earnings per share grew by 29.6% annually over the last two years, massively outpacing its peers
At $53.28 per share, CBIZ trades at 14.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.