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.
Identifying genuine bargains from value traps is something many investors struggle with, which is why we started StockStory - to help you find the best 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:
Herbalife (HLF)
Forward P/E Ratio: 3.6x
With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE:HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals.
Why Is HLF Not Exciting?
- Falling unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.9%
- Issuance of new shares over the last three years caused its earnings per share to fall by 15.9% annually, even worse than its revenue declines
Herbalife is trading at $9.02 per share, or 3.6x forward P/E. Dive into our free research report to see why there are better opportunities than HLF.
Worthington (WOR)
Forward P/E Ratio: 14.3x
Founded by a steel salesman, Worthington (NYSE:WOR) specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets.
Why Do We Steer Clear of WOR?
- Sales tumbled by 16.2% annually over the last five years, showing market trends are working against its favor during this cycle
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Worthington’s stock price of $53.57 implies a valuation ratio of 14.3x forward P/E. Check out our free in-depth research report to learn more about why WOR doesn’t pass our bar.
One Value Stock to Watch:
WesBanco (WSBC)
Forward P/B Ratio: 0.8x
Tracing its roots back to 1870 in West Virginia, WesBanco (NASDAQ:WSBC) is a bank holding company that provides retail and commercial banking, trust services, insurance, and investment products through its subsidiaries across several Midwestern and Mid-Atlantic states.
Why Are We Positive On WSBC?
- Market share is on track to rise over the next 12 months as its 26.5% projected net interest income growth implies demand will accelerate from its five-year trend
- Net interest margin grew by 30 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more chips to play with
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 6.3% annually
At $30.42 per share, WesBanco trades at 0.8x forward P/B. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 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 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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