ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

1 Value Stock Worth Your Attention and 2 to Question

GPRO 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. Keeping that in mind, here is one value stock trading at a big discount to its intrinsic value and two with little support.

Two Value Stocks to Sell:

GoPro (GPRO)

Forward P/E Ratio: 13.3x

Known for sponsoring extreme athletes, GoPro (NASDAQ: GPRO) is a camera company known for its POV videos and editing software.

Why Do We Pass on GPRO?

  1. Products and services have few die-hard fans as sales have declined by 6.1% annually over the last five years
  2. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
  3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

GoPro’s stock price of $0.85 implies a valuation ratio of 13.3x forward P/E. If you’re considering GPRO for your portfolio, see our FREE research report to learn more.

Brown-Forman (BF.B)

Forward P/E Ratio: 13.7x

Best known for its Jack Daniel’s whiskey, Brown-Forman (NYSE: BF.B) is an alcoholic beverage company with a broad portfolio of brands in wines and spirits.

Why Are We Cautious About BF.B?

  1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
  2. Forecasted revenue decline of 2.9% for the upcoming 12 months implies demand will fall off a cliff
  3. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 6 percentage points

Brown-Forman is trading at $26.56 per share, or 13.7x forward P/E. To fully understand why you should be careful with BF.B, check out our full research report (it’s free).

One Value Stock to Buy:

Customers Bancorp (CUBI)

Forward P/B Ratio: 0.9x

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE: CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Why Will CUBI Beat the Market?

  1. Annual net interest income growth of 9.8% over the last four years beat the sector average and underscores the value of its loans
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 21.9% over the last five years outstripped its revenue performance
  3. Balance sheet strength has increased this cycle as its 18.7% annual tangible book value per share growth over the last five years was exceptional

At $53.91 per share, Customers Bancorp trades at 0.9x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 6 Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% 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

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.