Value investing has produced some of the world’s most famous investing billionaires, including Warren Buffett, David Einhorn, and Seth Klarman, who built their fortunes by purchasing wonderful businesses at reasonable prices. But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.
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. That said, here is one value stock with strong fundamentals and two best left ignored.
Two Value Stocks to Sell:
Asure Software (ASUR)
Forward P/S Ratio: 1.5x
Operating in the often-overlooked smaller metropolitan markets where HR expertise can be scarce, Asure Software (NASDAQ: ASUR) provides cloud-based human capital management software and services that help small and medium-sized businesses manage payroll, taxes, time tracking, and HR compliance.
Why Does ASUR Fall Short?
- Sales trends were unexciting over the last two years as its 12.3% annual growth was below the typical software company
- Estimated sales growth of 10.4% for the next 12 months implies demand will slow from its two-year trend
- Poor free cash flow margin of 5.3% for the last year limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $7.80 per share, Asure Software trades at 1.5x forward price-to-sales. If you’re considering ASUR for your portfolio, see our FREE research report to learn more.
Booz Allen Hamilton (BAH)
Forward P/E Ratio: 10x
With roots dating back to 1914 and deep ties to nearly all U.S. cabinet-level departments, Booz Allen Hamilton (NYSE: BAH) provides management consulting, technology services, and cybersecurity solutions primarily to U.S. government agencies and military branches.
Why Are We Cautious About BAH?
- The company has faced growth challenges as its 2.6% annual revenue increases over the last two years fell short of other business services companies
- Estimated sales growth of 1.6% for the next 12 months is soft and implies weaker demand
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 8.9% annually
Booz Allen Hamilton is trading at $63.18 per share, or 10x forward P/E. Read our free research report to see why you should think twice about including BAH in your portfolio.
One Value Stock to Buy:
Viper Energy (VNOM)
Forward P/E Ratio: 15.5x
Operating a business model that requires no drilling rigs or production equipment of its own, Viper Energy (NASDAQ: VNOM) owns mineral and royalty interests in oil and gas properties, collecting revenue when operators extract resources from land.
Why Is VNOM a Top Pick?
- Annual revenue growth of 36.8% over the past ten years was outstanding, reflecting market share gains this cycle
- Attractive asset base leads to wonderful unit economics and a best-in-class gross margin of 99.8%
- EBITDA margin improvement of 6.4 percentage points over the last five years demonstrates its ability to scale efficiently
Viper Energy’s stock price of $42.01 implies a valuation ratio of 15.5x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
