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.

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 trading at a big discount to its intrinsic value and two with little support.

Two Value Stocks to Sell:

Cushman & Wakefield (CWK)

Forward P/E Ratio: 9x

With expertise in the commercial real estate sector, Cushman & Wakefield (NYSE: CWK) is a global Chicago-based real estate firm offering a comprehensive range of services to clients.

Why Should You Dump CWK?

1. Annual sales declines of 2.4% for the past two years show its products and services struggled to connect with the market
2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 8.6% annually while its revenue grew
3. Underwhelming 6.4% return on capital reflects management’s difficulties in finding profitable growth opportunities

Cushman & Wakefield’s stock price of $10.06 implies a valuation ratio of 9x forward P/E. If you’re considering CWK for your portfolio, see our FREE research report to learn more.

Haemonetics (HAE)

Forward P/E Ratio: 14.2x

With roots dating back to 1971 and a mission to improve blood-related healthcare, Haemonetics (NYSE: HAE) provides specialized medical devices and software for blood collection, processing, and management across plasma centers, blood banks, and hospitals.

Why Does HAE Worry Us?

1. Muted 6.6% annual revenue growth over the last five years shows its demand lagged behind its healthcare peers
2. Smaller revenue base of $1.36 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
3. Forecasted revenue decline of 4.6% for the upcoming 12 months implies demand will fall off a cliff

At $70.53 per share, Haemonetics trades at 14.2x forward P/E. Read our free research report to see why you should think twice about including HAE in your portfolio.

One Value Stock to Watch:

Merck (MRK)

Forward P/E Ratio: 8.5x

With roots dating back to 1891 and a portfolio that includes the blockbuster cancer immunotherapy Keytruda, Merck (NYSE: MRK) develops and sells prescription medicines, vaccines, and animal health products across oncology, infectious diseases, cardiovascular, and other therapeutic areas.

Why Are We Fans of MRK?

1. Unparalleled scale of $63.92 billion in revenue gives it negotiating leverage and staying power in an industry with high barriers to entry
2. Free cash flow margin expanded by 11.2 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
3. ROIC punches in at 15.6%, illustrating management’s expertise in identifying profitable investments

Merck is trading at $77.02 per share, or 8.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.