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1 Value Stock to Research Further and 2 We Find Risky

SABR Cover Image

Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune 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.

Identifying genuine bargains from value traps is something many investors struggle with, which is why we started StockStory - to help you find the best companies. That said, here is one value stock with strong fundamentals and two with little support.

Two Value Stocks to Sell:

Sabre (SABR)

Forward P/E Ratio: 5.7x

Originally a division of American Airlines, Sabre (NASDAQ: SABR) is a technology provider for the global travel and tourism industry.

Why Are We Cautious About SABR?

  1. Demand for its offerings was relatively low as its number of central reservation system transactions has underwhelmed
  2. Cash burn makes us question whether it can achieve sustainable long-term growth
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

At $1.83 per share, Sabre trades at 5.7x forward P/E. If you’re considering SABR for your portfolio, see our FREE research report to learn more.

Array (ARRY)

Forward P/E Ratio: 12.6x

Going public in October 2020, Array (NASDAQ: ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.

Why Should You Sell ARRY?

  1. Weak unit sales over the past two years suggest it might have to lower prices to accelerate growth
  2. Earnings per share have contracted by 15.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
  3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Array is trading at $8.80 per share, or 12.6x forward P/E. Read our free research report to see why you should think twice about including ARRY in your portfolio.

One Value Stock to Watch:

Astrana Health (ASTH)

Forward P/E Ratio: 11.9x

Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ: ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models.

Why Could ASTH Be a Winner?

  1. Impressive 36.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Projected revenue growth of 59.1% for the next 12 months is above its two-year trend, pointing to accelerating demand
  3. Earnings growth has trumped its peers over the last five years as its EPS has compounded at 19.6% annually

Astrana Health’s stock price of $27.77 implies a valuation ratio of 11.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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

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.

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