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.
Identifying genuine bargains from value traps is something many investors struggle with, which is why we started StockStory - to help you find the best companies. That said, here is one value stock offering a compelling risk-reward profile and two with little support.
Two Value Stocks to Sell:
USANA (USNA)
Forward P/E Ratio: 10.4x
Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE: USNA) manufactures and sells nutritional, personal care, and skincare products.
Why Is USNA Not Exciting?
- Sales tumbled by 4.2% annually over the last three years, showing consumer trends are working against its favor
- Forecasted revenue decline of 1.4% for the upcoming 12 months implies demand will fall even further
- Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 20.9% annually, worse than its revenue
USANA is trading at $19.65 per share, or 10.4x forward P/E. To fully understand why you should be careful with USNA, check out our full research report (it’s free for active Edge members).
MGM Resorts (MGM)
Forward P/E Ratio: 14.2x
Operating several properties on the Las Vegas Strip, MGM Resorts (NYSE: MGM) is a global hospitality and entertainment company known for its resorts and casinos.
Why Is MGM Risky?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 6% over the last two years was below our standards for the consumer discretionary sector
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
MGM Resorts’s stock price of $32.73 implies a valuation ratio of 14.2x forward P/E. If you’re considering MGM for your portfolio, see our FREE research report to learn more.
One Value Stock to Watch:
Elevance Health (ELV)
Forward P/E Ratio: 11.6x
Formerly known as Anthem until its 2022 rebranding, Elevance Health (NYSE: ELV) is one of America's largest health insurers, serving approximately 47 million medical members through its network-based managed care plans.
Why Are We Fans of ELV?
- Products and services resonate with customers, evidenced by its respectable 10.6% annualized sales growth over the last five years
- Unparalleled scale of $194.8 billion in revenue enables it to spread administrative costs across a larger membership base
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
At $321.91 per share, Elevance Health trades at 11.6x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.
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