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.
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 are two value stocks offering compelling risk-reward profiles and one with little support.
One Value Stock to Sell:
Fortune Brands (FBIN)
Forward P/E Ratio: 12.9x
Targeting a wide customer base of residential and commercial customers, Fortune Brands (NYSE: FBIN) makes plumbing, security, and outdoor living products.
Why Is FBIN Risky?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 10.4 percentage points
- Earnings per share fell by 5.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
Fortune Brands’s stock price of $51.77 implies a valuation ratio of 12.9x forward P/E. To fully understand why you should be careful with FBIN, check out our full research report (it’s free for active Edge members).
Two Value Stocks to Watch:
Zeta Global (ZETA)
Forward P/S Ratio: 2.4x
Powered by an AI engine that processes over one trillion consumer signals monthly, Zeta Global (NYSE: ZETA) operates a data-driven cloud platform that helps companies target, connect, and engage with consumers through personalized marketing across channels like email, social media, and video.
Why Will ZETA Beat the Market?
- Billings growth has averaged 36.4% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Expected revenue growth of 31.6% for the next year suggests its market share will rise
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
Zeta Global is trading at $17.98 per share, or 2.4x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
Maximus (MMS)
Forward P/E Ratio: 10.8x
With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE: MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally.
Why Does MMS Stand Out?
- Annual revenue growth of 9.4% over the past five years was outstanding, reflecting market share gains this cycle
- Economies of scale give it more fixed cost leverage than its smaller competitors
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
At $87.26 per share, Maximus trades at 10.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 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.
