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 are two value stocks trading at big discounts to their intrinsic values and one facing an uphill battle.
One Value Stock to Sell:
Voya Financial (VOYA)
Forward P/E Ratio: 9.8x
Originally spun off from Dutch financial giant ING in 2013 and rebranded with a name suggesting "voyage," Voya Financial (NYSE: VOYA) provides workplace benefits and savings solutions to U.S. employers, helping their employees achieve better financial outcomes through retirement plans and insurance products.
Why Do We Think Twice About VOYA?
- Sales trends were unexciting over the last two years as its 5.5% annual growth was below the typical financials company
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 4.9% annually
- Tangible book value per share tumbled by 13.1% annually over the last five years, showing financials sector trends are working against it during this cycle
Voya Financial is trading at $94.37 per share, or 9.8x forward P/E. Read our free research report to see why you should think twice about including VOYA in your portfolio.
Two Value Stocks to Watch:
The Trade Desk (TTD)
Forward P/S Ratio: 2.8x
Built as an alternative to "walled garden" advertising ecosystems, The Trade Desk (NASDAQ: TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices.
Why Are We Positive on TTD?
- Annual revenue growth of 20.2% over the last two years was superb and indicates its market share is rising
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Healthy operating margin of 20.3% shows it’s a well-run company with efficient processes, and it turbocharged its profits by achieving some fixed cost leverage
The Trade Desk’s stock price of $19.18 implies a valuation ratio of 2.8x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
QuinStreet (QNST)
Forward P/E Ratio: 10.6x
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ: QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
Why Will QNST Outperform?
- Annual revenue growth of 47.2% over the last two years was superb and indicates its market share increased during this cycle
- Additional sales over the last two years increased its profitability as the 628% annual growth in its earnings per share outpaced its revenue
- Rising returns on capital show the company is starting to reap the benefits of its past investments
At $15.82 per share, QuinStreet trades at 10.6x forward P/E. Is now the right time to buy? Find out in our full 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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
