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. That said, here is one value stock trading at a big discount to its intrinsic value and two best left ignored.

Two Value Stocks to Sell:

B&G Foods (BGS)

Forward P/E Ratio: 7.7x

Started as a small grocery store in New York City, B&G Foods (NYSE: BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.

Why Is BGS Risky?

1. Products aren't resonating with the market as its revenue declined by 3.9% annually over the last three years
2. Sales were less profitable over the last three years as its earnings per share fell by 27.2% annually, worse than its revenue declines
3. 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

B&G Foods’s stock price of $4.61 implies a valuation ratio of 7.7x forward P/E. If you’re considering BGS for your portfolio, see our FREE research report to learn more.

Charter (CHTR)

Forward P/E Ratio: 6.4x

Operating as Spectrum, Charter (NASDAQ: CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.

Why Do We Think Twice About CHTR?

1. Sluggish trends in its internet subscribers suggest customers aren’t adopting its solutions as quickly as the company hoped
2. Estimated sales for the next 12 months are flat and imply a softer demand environment
3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $263.01 per share, Charter trades at 6.4x forward P/E. Read our free research report to see why you should think twice about including CHTR in your portfolio.

One Value Stock to Buy:

Blue Bird (BLBD)

Forward P/E Ratio: 14.3x

With around a century of experience, Blue Bird (NASDAQ: BLBD) is a manufacturer of school buses and complementary parts.

Why Are We Backing BLBD?

1. Market share has increased this cycle as its 14.3% annual revenue growth over the last two years was exceptional
2. Additional sales over the last two years increased its profitability as the 317% annual growth in its earnings per share outpaced its revenue
3. Returns on capital are climbing as management makes more lucrative bets

Blue Bird is trading at $58 per share, or 14.3x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out 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 Exlservice (+354% 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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