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 – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
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 offering a compelling risk-reward profile and two climbing an uphill battle.
Two Value Stocks to Sell:
Post (POST)
Forward P/E Ratio: 15.3x
Founded in 1895, Post (NYSE:POST) is a packaged food company known for its namesake breakfast cereal and healthier-for-you snacks.
Why Are We Cautious About POST?
- Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Post’s stock price of $109.68 implies a valuation ratio of 15.3x forward P/E. Check out our free in-depth research report to learn more about why POST doesn’t pass our bar.
Select Medical (SEM)
Forward P/E Ratio: 12.9x
With a nationwide network spanning 46 states and over 2,700 healthcare facilities, Select Medical (NYSE:SEM) operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers across the United States.
Why Are We Out on SEM?
- Declining admissions over the past two years imply it may need to invest in improvements to get back on track
- Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 11% annually
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $15.89 per share, Select Medical trades at 12.9x forward P/E. Read our free research report to see why you should think twice about including SEM in your portfolio.
One Value Stock to Watch:
Fidelis Insurance (FIHL)
Forward P/B Ratio: 0.8x
Founded in Bermuda in 2014 and designed to adapt nimbly to evolving market conditions, Fidelis Insurance (NYSE:FIHL) is a global specialty insurer and reinsurer that provides customized coverage across property, specialty, and bespoke risk solutions.
Why Does FIHL Stand Out?
- Strong 17.1% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
- Forecasted revenue growth of 8.9% for the next 12 months indicates its momentum over the last two years is sustainable
- Projected book value per share growth of 29.1% for the next 12 months is above its two-year trend, pointing to accelerating profitability
Fidelis Insurance is trading at $19.36 per share, or 0.8x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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.