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.
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 with strong fundamentals and two with little support.
Two Value Stocks to Sell:
Shoe Carnival (SCVL)
Forward P/E Ratio: 12.7x
Known for its playful atmosphere that features carnival elements, Shoe Carnival (NASDAQ:SCVL) is a retailer that sells footwear from mainstream brands for the entire family.
Why Are We Out on SCVL?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Smaller revenue base of $1.14 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Sales were less profitable over the last three years as its earnings per share fell by 21.7% annually, worse than its revenue declines
Shoe Carnival is trading at $19.61 per share, or 12.7x forward P/E. Check out our free in-depth research report to learn more about why SCVL doesn’t pass our bar.
Excelerate Energy (EE)
Forward P/E Ratio: 15x
Operating specialized vessels that can deliver up to 1.2 billion cubic feet of natural gas per day, Excelerate Energy (NYSE:EE) provides liquified natural gas regasification services using floating vessels that convert LNG back into natural gas.
Why Are We Hesitant About EE?
- Modest revenue base of $1.23 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- High extraction costs and unfavorable asset economics are reflected in its low gross margin of 30.1%
At $34.70 per share, Excelerate Energy trades at 15x forward P/E. Dive into our free research report to see why there are better opportunities than EE.
One Value Stock to Buy:
Northern Oil and Gas (NOG)
Forward P/E Ratio: 7.1x
Taking the path less traveled in the oil industry by choosing not to operate its own wells, Northern Oil and Gas (NYSE:NOG) acquires minority stakes in oil and gas wells operated by other companies across major U.S. shale basins.
Why Should You Buy NOG?
- Impressive 28.9% annual revenue growth over the last ten years indicates it’s winning market share this cycle
- Attractive asset base leads to wonderful unit economics and a best-in-class gross margin of 81%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Northern Oil and Gas’s stock price of $24.77 implies a valuation ratio of 7.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
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.