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.

Identifying genuine bargains from value traps is something many investors struggle with, which is why we started StockStory - to help you find the best companies. Keeping that in mind, here is one value stock offering a compelling risk-reward profile and two climbing an uphill battle.

Two Value Stocks to Sell:

DaVita (DVA)

Forward P/E Ratio: 9.1x

With over 2,600 dialysis centers across the United States and a presence in 13 countries, DaVita (NYSE: DVA) operates a network of dialysis centers providing treatment and care for patients with chronic kidney disease and end-stage kidney disease.

Why Does DVA Fall Short?

1. Sizable revenue base leads to growth challenges as its 2.9% annual revenue increases over the last five years fell short of other healthcare companies
2. Flat treatments over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
3. Estimated sales growth of 3.7% for the next 12 months implies demand will slow from its two-year trend

At $111.46 per share, DaVita trades at 9.1x forward P/E. Check out our free in-depth research report to learn more about why DVA doesn’t pass our bar.

Phibro Animal Health (PAHC)

Forward P/E Ratio: 13.7x

With a portfolio of approximately 800 product lines serving farmers and veterinarians in 90 countries, Phibro Animal Health (NASDAQ: PAHC) develops, manufactures, and markets health products for livestock and companion animals, including antibacterials, vaccines, nutritional supplements, and mineral additives.

Why Do We Think Twice About PAHC?

1. Subscale operations are evident in its revenue base of $1.4 billion, meaning it has fewer distribution channels than its larger rivals
2. Poor free cash flow margin of 1.2% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

Phibro Animal Health is trading at $39.41 per share, or 13.7x forward P/E. Read our free research report to see why you should think twice about including PAHC in your portfolio.

One Value Stock to Buy:

Baldwin Insurance Group (BWIN)

Forward P/E Ratio: 13.5x

Rebranded from BRP Group in May 2024, Baldwin Insurance Group (NASDAQ: BWIN) is an independent insurance distribution company that provides tailored insurance, risk management, and employee benefits solutions to businesses and individuals.

Why Are We Backing BWIN?

1. Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 13.6% over the past two years
2. Adjusted operating margin improvement of 7.1 percentage points over the last five years demonstrates its ability to scale efficiently
3. Earnings per share grew by 22.5% annually over the last two years, massively outpacing its peers

Baldwin Insurance Group’s stock price of $26.45 implies a valuation ratio of 13.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.