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. That said, here are two value stocks trading at big discounts to their intrinsic values and one with little support.
One Value Stock to Sell:
Fastly (FSLY)
Forward P/S Ratio: 2x
Taking its name from the core advantage it delivers to customers, Fastly (NYSE: FSLY) operates an edge cloud platform that processes, secures, and delivers web content as close to end users as possible, enabling faster digital experiences.
Why Do We Avoid FSLY?
- Struggled to drive increased usage of its software, demonstrated by its subpar 103% net revenue retention rate
- Sky-high servicing costs result in an inferior gross margin of 53.9% that must be offset through increased usage
- Persistent operating margin losses suggest the business manages its expenses poorly
At $8.39 per share, Fastly trades at 2x forward price-to-sales. To fully understand why you should be careful with FSLY, check out our full research report (it’s free for active Edge members).
Two Value Stocks to Watch:
Match Group (MTCH)
Forward EV/EBITDA Ratio: 6.7x
Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ: MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.
Why Does MTCH Stand Out?
- 8.9% annual increases in its average revenue per user over the last two years show its platform is resonating with power users
- Excellent EBITDA margin of 36.3% highlights the efficiency of its business model
- Robust free cash flow margin of 26.4% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy
Match Group’s stock price of $33.33 implies a valuation ratio of 6.7x forward EV/EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Synchrony Financial (SYF)
Forward P/E Ratio: 7.9x
Powering over 73 million active accounts and partnerships with major brands like Amazon, PayPal, and Lowe's, Synchrony Financial (NYSE: SYF) provides credit cards, installment loans, and banking products through partnerships with retailers, healthcare providers, and digital platforms.
Why Do We Love SYF?
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Annual tangible book value per share growth of 20.8% over the last two years was superb and indicates its capital strength increased during this cycle
- ROE punches in at 23.1%, illustrating management’s expertise in identifying profitable investments
Synchrony Financial is trading at $72 per share, or 7.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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