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, and a low valuation can reflect underlying business challenges rather than a genuine bargain.
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. That said, here are two value stocks trading at big discounts to their intrinsic values and one facing an uphill battle.
One Value Stock to Sell:
Artisan Partners (APAM)
Forward P/E Ratio: 10.6x
Founded in 1994 with a focus on autonomous investment teams and a "high-value-added" approach, Artisan Partners (NYSE:APAM) is an investment management firm that offers actively managed equity and fixed income strategies to institutional and individual investors.
Why Do We Avoid APAM?
- 2.8% annual revenue growth over the last five years was slower than its financials peers
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 1.3% annually
Artisan Partners is trading at $39.36 per share, or 10.6x forward P/E. To fully understand why you should be careful with APAM, check out our full research report (it’s free).
Two Value Stocks to Watch:
Core & Main (CNM)
Forward P/E Ratio: 13.1x
Formerly a division of industrial distributor HD Supply, Core & Main (NYSE:CNM) is a provider of water, wastewater, and fire protection products and services.
Why Are We Fans of CNM?
- Market share has increased this cycle as its 12.9% annual revenue growth over the last five years was exceptional
- Free cash flow margin grew by 8.5 percentage points over the last five years, giving the company more chips to play with
- ROIC punches in at 15.6%, illustrating management’s expertise in identifying profitable investments
Core & Main’s stock price of $40.82 implies a valuation ratio of 13.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Brown & Brown (BRO)
Forward P/E Ratio: 14.4x
With roots dating back to 1939 and operations spanning 44 U.S. states and 14 countries, Brown & Brown (NYSE:BRO) is an insurance brokerage and risk management firm that markets and sells insurance products across property, casualty, and employee benefits sectors.
Why Do We Love BRO?
- Impressive 22.4% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 16.9% annually
- Robust free cash flow margin of 22.7% gives it many options for capital deployment
At $66.33 per share, Brown & Brown trades at 14.4x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.