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.
Separating the winners from the value traps is a tough challenge, and that’s where StockStory comes in. Our job is to find you high-quality companies that will stand the test of time. 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:
Oaktree Specialty Lending (OCSL)
Forward P/E Ratio: 8.6x
Managed by Oaktree Capital Management, one of the world's premier alternative investment firms, Oaktree Specialty Lending (NASDAQ: OCSL) is a business development company that provides customized financing solutions to mid-market companies across various industries.
Why Should You Sell OCSL?
- Sales tumbled by 13.2% annually over the last two years, showing market trends are working against it during this cycle
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
- Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 5.9% annually over the last five years
At $12.16 per share, Oaktree Specialty Lending trades at 8.6x forward P/E. If you’re considering OCSL for your portfolio, see our FREE research report to learn more.
Two Value Stocks to Watch:
Astec (ASTE)
Forward P/E Ratio: 12.7x
Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ: ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.
Why Could ASTE Be a Winner?
- Projected revenue growth of 12.9% for the next 12 months indicates demand will rise above its two-year trend
- Operating margin expanded by 4.6 percentage points over the last five years as it scaled and became more efficient
- Additional sales over the last two years increased its profitability as the 18.5% annual growth in its earnings per share outpaced its revenue
Astec is trading at $51.38 per share, or 12.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Affiliated Managers Group (AMG)
Forward P/E Ratio: 9.5x
Using a partnership approach that preserves entrepreneurial culture at its portfolio companies, Affiliated Managers Group (NYSE: AMG) is an investment firm that acquires stakes in boutique asset management companies while allowing them to maintain operational independence.
Why Does AMG Stand Out?
- Performance over the past two years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Affiliated Managers Group’s stock price of $354.47 implies a valuation ratio of 9.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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.
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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.
