The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer. However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.
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. Keeping that in mind, here is one value stock with strong fundamentals and two climbing an uphill battle.
Two Value Stocks to Sell:
RingCentral (RNG)
Forward P/S Ratio: 1.1x
Built on its proprietary Message Video Phone (MVP) platform that unifies multiple communication methods, RingCentral (NYSE: RNG) provides AI-driven cloud communications and collaboration solutions that enable businesses to connect through voice, video, messaging, and contact center services.
Why Should You Sell RNG?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 5% underwhelmed
- Estimated sales growth of 5% for the next 12 months implies demand will slow from its two-year trend
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
At $30.67 per share, RingCentral trades at 1.1x forward price-to-sales. Check out our free in-depth research report to learn more about why RNG doesn’t pass our bar.
UFP Industries (UFPI)
Forward P/E Ratio: 14.4x
Beginning as a lumber supplier in the 1950s, UFP Industries (NASDAQ: UFPI) is a holding company making building materials for the construction, retail, and industrial sectors.
Why Is UFPI Not Exciting?
- Declining unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Earnings per share have dipped by 20.4% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Diminishing returns on capital suggest its earlier profit pools are drying up
UFP Industries’s stock price of $93.11 implies a valuation ratio of 14.4x forward P/E. Dive into our free research report to see why there are better opportunities than UFPI.
One Value Stock to Watch:
Ameriprise Financial (AMP)
Forward P/E Ratio: 12.5x
Founded in 1894 and spun off from American Express in 2005, Ameriprise Financial (NYSE: AMP) provides financial planning, wealth management, asset management, and insurance products to help individuals and institutions achieve their financial goals.
Why Does AMP Stand Out?
- Share repurchases over the last five years enabled its annual earnings per share growth of 17.1% to outpace its revenue gains
- Balance sheet strength has increased this cycle as its 27.4% annual tangible book value per share growth over the last two years was exceptional
- Industry-leading 56.5% return on equity demonstrates management’s skill in finding high-return investments
Ameriprise Financial is trading at $491.89 per share, or 12.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
