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.
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 climbing an uphill battle.
Two Value Stocks to Sell:
Essent Group (ESNT)
Forward P/B Ratio: 1x
Serving as a crucial bridge between homebuyers and the American dream of homeownership, Essent Group (NYSE:ESNT) provides private mortgage insurance and title services that enable lenders to offer home loans with down payments of less than 20%.
Why Are We Wary of ESNT?
- Net premiums earned expanded by 3.1% annually over the last five years, falling below our expectations for the insurance sector
- Costs have risen faster than its revenue over the last two years, causing its pre-tax profit margin to decline by 10.2 percentage points
- Annual earnings per share growth of 5% underperformed its revenue over the last two years, showing its incremental sales were less profitable
Essent Group’s stock price of $61.86 implies a valuation ratio of 1x forward P/B. If you’re considering ESNT for your portfolio, see our FREE research report to learn more.
Main Street Capital (MAIN)
Forward P/E Ratio: 14.7x
With a focus on building long-term partnerships rather than quick transactions, Main Street Capital (NYSE:MAIN) is a business development company that provides long-term debt and equity capital to lower middle market and middle market companies.
Why Do We Think Twice About MAIN?
- Incremental sales over the last two years were less profitable as its earnings per share were flat while its revenue grew
- Annual tangible book value per share growth of 7.5% over the last two years was below our standards for the financials sector
Main Street Capital is trading at $58 per share, or 14.7x forward P/E. Check out our free in-depth research report to learn more about why MAIN doesn’t pass our bar.
One Value Stock to Buy:
Euronet Worldwide (EEFT)
Forward P/E Ratio: 6.8x
Operating a global network of over 47,000 ATMs and 821,000 point-of-sale terminals across more than 60 countries, Euronet Worldwide (NASDAQ:EEFT) provides electronic payment solutions including ATM services, prepaid product processing, and international money transfer services.
Why Do We Love EEFT?
- Annual revenue growth of 11.1% over the last five years beat the sector average and underscores the unique value of its offerings
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 23% exceeded its revenue gains over the last five years
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $74.06 per share, Euronet Worldwide trades at 6.8x forward P/E. Is now the right 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 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-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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