
The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer. However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.
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 is one value stock trading at a big discount to its intrinsic value and two best left ignored.
Two Value Stocks to Sell:
Apogee (APOG)
Forward P/E Ratio: 12.5x
Involved in the design of the Apple Store on Fifth Avenue in New York City, Apogee (NASDAQ: APOG) sells architectural products and services such as high-performance glass for commercial buildings.
Why Do We Steer Clear of APOG?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Forecasted revenue decline of 1.8% for the upcoming 12 months implies demand will fall off a cliff
- Earnings per share have dipped by 12.4% annually over the past two years, which is concerning because stock prices follow EPS over the long term
At $38.06 per share, Apogee trades at 12.5x forward P/E. Check out our free in-depth research report to learn more about why APOG doesn’t pass our bar.
WesBanco (WSBC)
Forward P/B Ratio: 0.8x
Tracing its roots back to 1870 in West Virginia, WesBanco (NASDAQ: WSBC) is a bank holding company that provides retail and commercial banking, trust services, insurance, and investment products through its subsidiaries across several Midwestern and Mid-Atlantic states.
Why Does WSBC Give Us Pause?
- 10% annual revenue growth over the last five years was slower than its banking peers
- Flat tangible book value per share over the last five years suggest it must find different ways to enhance shareholder value during this cycle
- Underwhelming 6.9% return on equity reflects management’s difficulties in finding profitable growth opportunities
WesBanco is trading at $34.29 per share, or 0.8x forward P/B. Read our free research report to see why you should think twice about including WSBC in your portfolio.
One Value Stock to Watch:
Qualcomm (QCOM)
Forward P/E Ratio: 12.8x
Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ: QCOM) is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.
Why Do We Like QCOM?
- Annual revenue growth of 15.3% over the past five years was outstanding, reflecting market share gains this cycle
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
- Industry-leading 47% return on capital demonstrates management’s skill in finding high-return investments
Qualcomm’s stock price of $152.43 implies a valuation ratio of 12.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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 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.