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 trading at a big discount to its intrinsic value and two climbing an uphill battle.
Two Value Stocks to Sell:
Independent Bank (INDB)
Forward P/B Ratio: 0.9x
Tracing its roots back to 1907 and serving as a financial cornerstone in New England for over a century, Independent Bank Corp. (NASDAQ: INDB) operates as the holding company for Rockland Trust, providing banking, investment, and financial services across Eastern Massachusetts and Rhode Island.
Why Are We Hesitant About INDB?
- 1.6% annual revenue growth over the last two years was slower than its banking peers
- Earnings per share fell by 6.9% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Annual tangible book value per share growth of 4.6% over the last two years was below our standards for the banking sector
Independent Bank is trading at $67.30 per share, or 0.9x forward P/B. To fully understand why you should be careful with INDB, check out our full research report (it’s free for active Edge members).
Ladder Capital (LADR)
Forward P/B Ratio: 0.9x
Founded during the 2008 financial crisis when traditional lenders retreated from commercial real estate, Ladder Capital (NYSE: LADR) is a real estate investment trust that originates commercial real estate loans, owns commercial properties, and invests in real estate securities.
Why Does LADR Give Us Pause?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 15.4% annually over the last two years
- Earnings per share have contracted by 15.5% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Tangible book value per share stagnated over the last five years, limiting its ability to leverage its balance sheet to make additional investments
Ladder Capital’s stock price of $10.57 implies a valuation ratio of 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than LADR.
One Value Stock to Buy:
QuinStreet (QNST)
Forward P/E Ratio: 14x
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ: QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
Why Will QNST Beat the Market?
- Market share has increased this cycle as its 37.2% annual revenue growth over the last two years was exceptional
- Projected revenue growth of 8.7% for the next 12 months suggests its momentum from the last two years will persist
- Earnings per share grew by 160% annually over the last two years and trumped its peers
At $14.79 per share, QuinStreet trades at 14x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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