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.
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 are two value stocks trading at big discounts to their intrinsic values and one best left ignored.
One value stock to sell:
OneMain (OMF)
Forward P/E Ratio: 7.6x
Dating back to 1912 and formerly known as Springleaf, OneMain Holdings (NYSE:OMF) provides personal loans, auto financing, and credit cards to nonprime consumers who have limited access to traditional banking services.
Why Does OMF Give Us Pause?
- Sales trends were unexciting over the last five years as its 5.5% annual growth was below the typical financials company
- Earnings per share fell by 9.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
OneMain’s stock price of $55.71 implies a valuation ratio of 7.6x forward P/E. Dive into our free research report to see why there are better opportunities than OMF.
Two value stocks to buy:
BGC (BGC)
Forward P/E Ratio: 8.1x
Tracing its roots back to 1945 and named after founder Bernard Gerald Cantor, BGC Group (NASDAQ:BGC) operates a global brokerage and financial technology platform that facilitates trading across fixed income, foreign exchange, equities, energy, and commodities markets.
What Makes BGC Stand Out?
- Annual revenue growth of 24.3% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings per share grew by 24.3% annually over the last two years and trumped its peers
- Management team has demonstrated it can invest in profitable ventures through its 12.3% five-year return on equity
At $11.79 per share, BGC trades at 8.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Occidental Petroleum (OXY)
Forward P/E Ratio: 10.3x
Backed by Warren Buffett's Berkshire Hathaway as a major shareholder, Occidental Petroleum (NYSE:OXY) explores for, develops, and produces oil, natural gas liquids, and natural gas, primarily in the United States and Middle East.
Why Are We Bullish on OXY?
- Market share has increased this cycle as its 8.4% annual revenue growth over the last ten years was exceptional
- Unparalleled revenue scale of $24.47 billion gives it advantageous pricing and terms with suppliers
- Robust free cash flow margin of 23.6% gives it many options for capital deployment
Occidental Petroleum is trading at $64.15 per share, or 10.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-quality stocks for all market conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.