The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer. However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.
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. That said, here are two value stocks trading at big discounts to their intrinsic values and one climbing an uphill battle.
One Value Stock to Sell:
Inspired (INSE)
Forward P/E Ratio: 13.6x
Specializing in digital casino gaming, Inspired (NASDAQ: INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.
Why Should You Dump INSE?
- Lackluster 9.6% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Subpar operating margin of 9.6% constrains its ability to invest in process improvements or effectively respond to new competitive threats
- Poor free cash flow margin of 2.9% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Inspired is trading at $8.41 per share, or 13.6x forward P/E. Read our free research report to see why you should think twice about including INSE in your portfolio.
Two Value Stocks to Watch:
Lantheus (LNTH)
Forward P/E Ratio: 13.7x
Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.
Why Are We Positive On LNTH?
- Annual revenue growth of 35.5% over the last five years was superb and indicates its market share increased during this cycle
- Free cash flow margin increased by 19.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are growing as management capitalizes on its market opportunities
Lantheus’s stock price of $71.26 implies a valuation ratio of 13.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
TaskUs (TASK)
Forward P/E Ratio: 6.6x
Starting as a virtual assistant service in 2008 before evolving into a global digital services provider, TaskUs (NASDAQ: TASK) provides outsourced digital services including customer experience management, content moderation, and AI data services to innovative technology companies.
Why Are We Fans of TASK?
- Annual revenue growth of 21.1% over the past five years was outstanding, reflecting market share gains this cycle
- Free cash flow margin jumped by 21.6 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Historical investments are beginning to pay off as its returns on capital are growing
At $10.25 per share, TaskUs trades at 6.6x 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
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
