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.
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. That said, here are two value stocks trading at big discounts to their intrinsic values and one best left ignored.
One value stock to sell:
Crown Holdings (CCK)
Forward P/E ratio: 13.8x
Formerly Crown Cork & Seal, Crown Holdings (NYSE: CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.
Why Is CCK Not Exciting?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.1% for the last five years
- Gross margin of 20.2% reflects its high production costs
- Earnings per share lagged its peers over the last five years as they only grew by 2.5% annually
At $124.79 per share, Crown Holdings trades at 13.8x forward P/E. Dive into our free research report to see why there are better opportunities than CCK.
Two value stocks to watch:
Scorpio Tankers (STNG)
Forward P/E ratio: 6.9x
Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum.
Why Could STNG Be a Winner?
- Market share has increased this cycle as its 17.6% annual revenue growth over the last five years was exceptional
- Offerings are difficult to replicate at scale and result in a best-in-class gross margin of 71%
- Strong free cash flow margin of 53.2% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
Scorpio Tankers’s stock price of $84.65 implies a valuation ratio of 6.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
HNI (HNI)
Forward P/E ratio: 10.7x
With roots dating back to 1944 and a significant acquisition of Kimball International in 2023, HNI (NYSE: HNI) manufactures and sells office furniture systems, seating, and storage solutions, as well as residential fireplaces and heating products.
Why Is HNI a Top Pick?
- Annual revenue growth of 43.8% over the last two years was superb and indicates its market share increased during this cycle
- Expected revenue growth of 17% for the next year suggests its market share will rise
- Earnings per share grew by 17% annually over the last five years and trumped its peers
HNI is trading at $49.39 per share, or 10.7x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-quality stocks for all market conditions
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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
