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1 Value Stock with Competitive Advantages and 2 We Ignore

FVRR 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.

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 is one value stock with strong fundamentals and two climbing an uphill battle.

Two Value Stocks to Sell:

Fiverr (FVRR)

Forward EV/EBITDA Ratio: 7.4x

Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.

Why Does FVRR Worry Us?

  1. Active Buyers have declined by 9.4% annually over the last two years, suggesting it may need to revamp its features or user experience to stay competitive
  2. Estimated sales growth of 5.4% for the next 12 months implies demand will slow from its three-year trend
  3. High marketing expenses suggest it needs to spend heavily on new customer acquisition to sustain momentum

At $21.35 per share, Fiverr trades at 7.4x forward EV/EBITDA. If you’re considering FVRR for your portfolio, see our FREE research report to learn more.

CDW (CDW)

Forward P/E Ratio: 14.1x

Serving as a crucial bridge between technology manufacturers and end users since 1984, CDW (NASDAQ: CDW) is a multi-brand provider of information technology solutions that helps businesses and public sector organizations select, implement, and manage hardware, software, and IT services.

Why Do We Think Twice About CDW?

  1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
  2. Estimated sales growth of 2.1% for the next 12 months is soft and implies weaker demand
  3. Flat earnings per share over the last two years underperformed the sector average

CDW is trading at $144.48 per share, or 14.1x forward P/E. Read our free research report to see why you should think twice about including CDW in your portfolio.

One Value Stock to Watch:

NetApp (NTAP)

Forward P/E Ratio: 13.8x

Founded in 1992 as a pioneer in networked storage technology, NetApp (NASDAQ: NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds.

Why Are We Positive On NTAP?

  1. Average billings growth of 7.2% over the past two years enhances its liquidity and shows there is steady demand for its products
  2. Adjusted operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
  3. Robust free cash flow margin of 19.7% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety

NetApp’s stock price of $116.27 implies a valuation ratio of 13.8x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More

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 5 Growth Stocks for this month. 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 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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