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 offering compelling risk-reward profiles and one best left ignored.
One Value Stock to Sell:
General Motors (GM)
Forward P/E Ratio: 6.3x
Founded in 1908 by William C. Durant, General Motors (NYSE: GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac.
Why Does GM Fall Short?
- Declining unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Gross margin of 12.2% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Efficiency has decreased over the last five years as its operating margin fell by 5.8 percentage points
General Motors is trading at $81.20 per share, or 6.3x forward P/E. Read our free research report to see why you should think twice about including GM in your portfolio.
Two Value Stocks to Buy:
Zeta Global (ZETA)
Forward P/S Ratio: 2.1x
Powered by an AI engine that processes over one trillion consumer signals monthly, Zeta Global (NYSE: ZETA) operates a data-driven cloud platform that helps companies target, connect, and engage with consumers through personalized marketing across channels like email, social media, and video.
Why Should You Buy ZETA?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 36.4% over the last year
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
Zeta Global’s stock price of $15.38 implies a valuation ratio of 2.1x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
EVERTEC (EVTC)
Forward P/E Ratio: 7.2x
Operating one of Latin America's leading PIN debit networks called ATH, EVERTEC (NYSE: EVTC) is a payment transaction processor and financial technology provider that enables merchants and financial institutions across Latin America and the Caribbean to accept and process electronic payments.
Why Do We Love EVTC?
- Impressive 16.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Annual earnings per share growth of 12.5% over the last five years modestly outpaced its peers
- Industry-leading 30.8% return on equity demonstrates management’s skill in finding high-return investments
At $26.36 per share, EVERTEC trades at 7.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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.
