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.
Separating the winners from the value traps is a tough challenge, and that’s where StockStory comes in. Our job is to find you high-quality companies that will stand the test of time. 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:
Enova (ENVA)
Forward P/E Ratio: 9.4x
Pioneering online lending since 2004 with a massive database of over 65 terabytes of customer behavior data, Enova International (NYSE: ENVA) provides online financial services including installment loans and lines of credit to non-prime consumers and small businesses in the United States and Brazil.
Why Does ENVA Fall Short?
- Incremental sales over the last five years were less profitable as its 8.5% annual earnings per share growth lagged its revenue gains
- High net-debt-to-EBITDA ratio of 5× could force the company to raise capital on unfavorable terms if market conditions deteriorate
Enova is trading at $163.80 per share, or 9.4x forward P/E. To fully understand why you should be careful with ENVA, check out our full research report (it’s free).
Two Value Stocks to Buy:
Upstart (UPST)
Forward P/S Ratio: 2.2x
Using over 2,500 data variables and trained on nearly 82 million repayment events, Upstart (NASDAQ: UPST) is an AI-powered lending platform that uses machine learning to help banks and credit unions more accurately assess borrower risk for personal loans, auto loans, and home equity lines of credit.
Why Will UPST Beat the Market?
- Loan originations on its platform are soaring as they averaged 56.6% growth over the last year, enabling the company to collect more fees and expand into new markets like credit cards.
- Market share will likely rise over the next 12 months as its expected revenue growth of 32.6% is robust
- Free cash flow is anticipated to be positive next year, indicating the company is at a pivotal stage in its life
At $33.45 per share, Upstart trades at 2.2x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
Blue Bird (BLBD)
Forward P/E Ratio: 13.3x
With around a century of experience, Blue Bird (NASDAQ: BLBD) is a manufacturer of school buses and complementary parts.
Why Do We Love BLBD?
- Annual revenue growth of 14.3% over the past five years was outstanding, reflecting market share gains this cycle
- Free cash flow margin grew by 21 percentage points over the last five years, giving the company more chips to play with
- Returns on capital are climbing as management makes more lucrative bets
Blue Bird’s stock price of $68.66 implies a valuation ratio of 13.3x 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
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.
