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 are two value stocks trading at big discounts to their intrinsic values and one best left ignored.
One Value Stock to Sell:
Commerce (CMRC)
Forward P/S Ratio: 0.5x
As a founding member of the MACH Alliance advocating for modern tech standards, Commerce (NASDAQ: CMRC) provides a SaaS platform that enables businesses to build and manage online stores, connect with marketplaces, and integrate with point-of-sale systems.
Why Should You Sell CMRC?
- Products, pricing, or go-to-market strategy may need some adjustments as its 3.1% average billings growth over the last year was weak
- Forecasted revenue decline of 3% for the upcoming 12 months implies demand will fall off a cliff
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Commerce’s stock price of $2.20 implies a valuation ratio of 0.5x forward price-to-sales. Read our free research report to see why you should think twice about including CMRC in your portfolio.
Two Value Stocks to Watch:
CBIZ (CBZ)
Forward P/E Ratio: 13.2x
With over 120 offices across 33 states and a team of more than 6,700 professionals, CBIZ (NYSE: CBZ) provides accounting, tax, benefits, insurance brokerage, and advisory services to help small and mid-sized businesses manage their finances and operations.
Why Is CBZ a Good Business?
- Impressive 29.4% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings per share grew by 23.5% annually over the last two years, massively outpacing its peers
- Free cash flow margin jumped by 3.3 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $54.61 per share, CBIZ trades at 13.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Raymond James (RJF)
Forward P/E Ratio: 13.1x
Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial (NYSE: RJF) is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.
Why Are We Positive on RJF?
- Decent 10.8% annual revenue growth over the last two years beat most of its peers, showing customers find value in its products and services
- Share repurchases have increased shareholder returns as its annual earnings per share growth of 14.1% exceeded its revenue gains over the last five years
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Raymond James is trading at $181.03 per share, or 13.1x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
