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1 Value Stock with Exciting Potential and 2 to Question

GTLS Cover Image

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.

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 trading at a big discount to its intrinsic value and two best left ignored.

Two Value Stocks to Sell:

GEO Group (GEO)

Forward P/E Ratio: 13.9x

With a global footprint spanning three continents and approximately 81,000 beds across 100 facilities, GEO Group (NYSE: GEO) operates secure facilities, processing centers, and reentry services for government agencies in the United States, Australia, and South Africa.

Why Are We Out on GEO?

  1. Flat sales over the last five years suggest it must find different ways to grow during this cycle
  2. Sales over the last five years were less profitable as its earnings per share fell by 31.5% annually while its revenue was flat
  3. Free cash flow margin dropped by 8.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up

GEO Group is trading at $24.72 per share, or 13.9x forward P/E. To fully understand why you should be careful with GEO, check out our full research report (it’s free).

ASGN (ASGN)

Forward P/E Ratio: 10.2x

Evolving from its roots in IT staffing to become a high-end technology consulting powerhouse, ASGN (NYSE: ASGN) provides specialized IT consulting services and staffing solutions to Fortune 1000 companies and U.S. federal government agencies.

Why Is ASGN Risky?

  1. Sales tumbled by 6.7% annually over the last two years, showing market trends are working against its favor during this cycle
  2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 11.6% annually, worse than its revenue
  3. 5.1 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

ASGN’s stock price of $51.60 implies a valuation ratio of 10.2x forward P/E. If you’re considering ASGN for your portfolio, see our FREE research report to learn more.

One Value Stock to Buy:

Chart (GTLS)

Forward P/E Ratio: 11.1x

Installing the first bulk Co2 tank for McDonalds’s sodas, Chart (NYSE: GTLS) provides equipment to store and transport gasses.

Why Is GTLS a Good Business?

  1. Average backlog growth of 41.6% over the past two years shows it has a steady sales pipeline that will drive future orders
  2. Operating margin improvement of 7.3 percentage points over the last five years demonstrates its ability to scale efficiently
  3. Earnings per share grew by 28.7% annually over the last two years, massively outpacing its peers

At $144.21 per share, Chart trades at 11.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. 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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