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 with little support.
Two Value Stocks to Sell:
FirstSun Capital Bancorp (FSUN)
Forward P/B Ratio: 0.9x
Tracing its roots back to 1892 when it first opened its doors in Kansas, FirstSun Capital Bancorp (NASDAQ: FSUN) operates Sunflower Bank, providing commercial and consumer banking services to businesses and individuals across the Southwest region.
Why Are We Wary of FSUN?
- Muted 5.5% annual revenue growth over the last two years shows its demand lagged behind its banking peers
- Net interest margin shrank by 20.8 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the profitability of its loan book is decreasing or the market is becoming more competitive
- Tangible book value per share is projected to decrease by 3.3% over the next 12 months as capital generation weakens
FirstSun Capital Bancorp is trading at $39.06 per share, or 0.9x forward P/B. To fully understand why you should be careful with FSUN, check out our full research report (it’s free).
Northwest Bancshares (NWBI)
Forward P/B Ratio: 1x
Founded in 1896 and operating across Pennsylvania, New York, Ohio, and Indiana, Northwest Bancshares (NASDAQ: NWBI) is a bank holding company that operates Northwest Bank, providing personal and business banking, investment management, and trust services.
Why Are We Out on NWBI?
- 4.4% annual revenue growth over the last five years was slower than its banking peers
- Net interest income trends were unexciting over the last five years as its 6% annual growth was below the typical banking firm
- 2.5% annual tangible book value per share growth over the last two years was slower than its banking peers
Northwest Bancshares’s stock price of $12.97 implies a valuation ratio of 1x forward P/B. Read our free research report to see why you should think twice about including NWBI in your portfolio.
One Value Stock to Watch:
KBR (KBR)
Forward P/E Ratio: 10.7x
Known for projects like the construction of Guantanamo Bay, KBR provides professional services and technologies, specializing in engineering, construction, and government services sectors.
Why Are We Fans of KBR?
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Share buybacks catapulted its annual earnings per share growth to 17.9%, which outperformed its revenue gains over the last five years
- Rising returns on capital show management is finding more attractive investment opportunities
At $42.95 per share, KBR trades at 10.7x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
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 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.
