Value investing has produced some of the world’s most famous investing billionaires, including Warren Buffett, David Einhorn, and Seth Klarman, who built their fortunes 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 with little support.
Two Value Stocks to Sell:
Lazard (LAZ)
Forward P/E Ratio: 14x
Tracing its roots back to 1848 when it began as a dry goods merchant in New Orleans, Lazard (NYSE:LAZ) is a global financial advisory and asset management firm that provides strategic advice to corporations, governments, institutions, and wealthy individuals.
Why Are We Hesitant About LAZ?
- Muted 3.2% annual revenue growth over the last five years shows its demand lagged behind its financials peers
- Earnings per share fell by 9.9% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
Lazard’s stock price of $45.54 implies a valuation ratio of 14x forward P/E. Dive into our free research report to see why there are better opportunities than LAZ.
HA Sustainable Infrastructure Capital (HASI)
Forward P/E Ratio: 12.9x
With a proprietary "CarbonCount" metric that quantifies the environmental impact of each dollar invested, HA Sustainable Infrastructure Capital (NYSE:HASI) is an investment firm that finances and develops climate-positive infrastructure projects across renewable energy, energy efficiency, and ecological restoration.
Why Does HASI Worry Us?
- Performance over the past two years shows its incremental sales were less profitable, as its 9.7% annual earnings per share growth trailed its revenue gains
- Below-average return on equity indicates management struggled to find compelling investment opportunities
HA Sustainable Infrastructure Capital is trading at $38.02 per share, or 12.9x forward P/E. If you’re considering HASI for your portfolio, see our FREE research report to learn more.
One Value Stock to Watch:
SouthState (SSB)
Forward P/B Ratio: 1x
With roots dating back to the Great Depression era of 1933, SouthState (NYSE:SSB) is a financial holding company that provides banking services, wealth management, and correspondent banking services across six southeastern states.
Why Are We Positive on SSB?
- Market share has increased this cycle as its 19.3% annual net interest income growth over the last five years was exceptional
- Net interest margin increased by 42 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more capital to invest or return to shareholders
- Efficiency ratio improved by 15.3 percentage points over the last five years as it scaled
At $93.30 per share, SouthState trades at 1x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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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.