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. Keeping that in mind, here are two value stocks trading at big discounts to their intrinsic values and one best left ignored.
One Value Stock to Sell:
GEO Group (GEO)
Forward P/E Ratio: 12.8x
With a global footprint spanning three continents and approximately 81,000 beds across 100 facilities, GEO Group (NYSE: GEO) operates secure facilities, processing centers, and reentry services for government agencies in the United States, Australia, and South Africa.
Why Does GEO Fall Short?
- Muted 2.3% annual revenue growth over the last five years shows its demand lagged behind its business services peers
- Day-to-day expenses have swelled relative to revenue over the last four years as its adjusted operating margin fell by 6.3 percentage points
- Free cash flow margin dropped by 12.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up
GEO Group is trading at $13.27 per share, or 12.8x forward P/E. Dive into our free research report to see why there are better opportunities than GEO.
Two Value Stocks to Watch:
Brink's (BCO)
Forward P/E Ratio: 14.8x
Known for its iconic armored trucks that have been a fixture in American cities since 1859, Brink's (NYSE: BCO) provides secure transportation and management of cash and valuables for banks, retailers, and other businesses worldwide.
Why Are We Fans of BCO?
- Economies of scale give it some operating leverage when demand rises
- Share repurchases over the last five years enabled its annual earnings per share growth of 19.9% to outpace its revenue gains
- Improving returns on capital reflect management’s ability to monetize investments
At $130.47 per share, Brink's trades at 14.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
SEI Investments (SEIC)
Forward P/E Ratio: 14.2x
Founded in 1968 as Simulated Environments Inc. to train bank loan officers using computer simulations, SEI Investments (NASDAQ: SEIC) provides technology platforms, investment management, and operational solutions for financial institutions, wealth managers, and investors.
Why Are We Backing SEIC?
- Products and services resonate with customers, evidenced by its respectable 9.4% annualized sales growth over the last two years
- Share buybacks catapulted its annual earnings per share growth to 26.5%, which outperformed its revenue gains over the last two years
- Industry-leading 26.7% return on equity demonstrates management’s skill in finding high-return investments
SEI Investments’s stock price of $81.33 implies a valuation ratio of 14.2x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
