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1 Value Stock with Competitive Advantages and 2 We Avoid

MTCH Cover Image

Value investing has produced some of the world’s most famous investing billionaires, including Warren Buffett, David Einhorn, and Seth Klarman, who built their fortunes by purchasing wonderful businesses at reasonable prices. But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.

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. Keeping that in mind, here is one value stock trading at a big discount to its intrinsic value and two climbing an uphill battle.

Two Value Stocks to Sell:

Academy Sports (ASO)

Forward P/E Ratio: 9.1x

Founded in 1938 as a tire shop before expanding into fishing equipment, Academy Sports & Outdoor (NASDAQ: ASO) sells a broad selection of sporting goods but is still known for its outdoor activity merchandise.

Why Is ASO Not Exciting?

  1. Products have few die-hard fans as sales have declined by 2.4% annually over the last three years
  2. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
  3. 3.9 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position

At $58.50 per share, Academy Sports trades at 9.1x forward P/E. Check out our free in-depth research report to learn more about why ASO doesn’t pass our bar.

Comcast (CMCSA)

Forward P/E Ratio: 7.3x

Formerly known as American Cable Systems, Comcast (NASDAQ: CMCSA) is a multinational telecommunications company offering a wide range of services.

Why Should You Sell CMCSA?

  1. Performance surrounding its domestic broadband customers has lagged its peers
  2. Poor free cash flow margin of 11.8% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
  3. Rising returns on capital show management is making relatively better investments

Comcast is trading at $27.83 per share, or 7.3x forward P/E. To fully understand why you should be careful with CMCSA, check out our full research report (it’s free).

One Value Stock to Watch:

Match Group (MTCH)

Forward EV/EBITDA Ratio: 8.3x

Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ: MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.

Why Do We Like MTCH?

  1. Monetization efforts are paying off as its average revenue per user has grown by 7.9% annually over the last two years
  2. Highly efficient business model is illustrated by its impressive 35.7% EBITDA margin
  3. MTCH is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy

Match Group’s stock price of $31.52 implies a valuation ratio of 8.3x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

Check out the high-quality names we’ve flagged in 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 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

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