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 with strong fundamentals and two climbing an uphill battle.

Two Value Stocks to Sell:

Pitney Bowes (PBI)

Forward P/E Ratio: 9.5x

With a century-long history dating back to 1920 and processing over 15 billion pieces of mail annually, Pitney Bowes (NYSE: PBI) provides shipping, mailing technology, logistics, and financial services to businesses of all sizes.

Why Does PBI Give Us Pause?

1. Sales tumbled by 9% annually over the last five years, showing market trends are working against its favor during this cycle
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 3.4% for the last five years
3. ROIC of 9.4% reflects management’s challenges in identifying attractive investment opportunities

Pitney Bowes trades at a stock price of $11.48. Read our free research report to see why you should think twice about including PBI in your portfolio.

Hologic (HOLX)

Forward P/E Ratio: 14.6x

As a pioneer in 3D mammography technology that has revolutionized breast cancer detection, Hologic (NASDAQ: HOLX) develops and manufactures diagnostic products, medical imaging systems, and surgical devices focused primarily on women's health and wellness.

Why Is HOLX Not Exciting?

1. Constant currency revenue growth has disappointed over the past two years and shows demand was soft
2. Efficiency has decreased over the last five years as its adjusted operating margin fell by 23.2 percentage points
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Hologic is trading at $65.08 per share, or 14.6x forward P/E. Check out our free in-depth research report to learn more about why HOLX doesn’t pass our bar.

One Value Stock to Watch:

Concentrix (CNXC)

Forward P/E Ratio: 4.7x

With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ: CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.

Why Do We Like CNXC?

1. Annual revenue growth of 22% over the past two years was outstanding, reflecting market share gains this cycle
2. Economies of scale give it more fixed cost leverage than its smaller competitors
3. Able to self-fund growth initiatives without relying on external capital thanks to its 5.5% free cash flow margin

At $57.16 per share, Concentrix trades at 4.7x forward P/E. Is now the time to initiate a position? 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 Strong Momentum 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 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