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.

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 offering compelling risk-reward profiles and one with little support.

One Value Stock to Sell:

Fiserv (FISV)

Forward P/E Ratio: 7.1x

Powering over 1 billion accounts and processing more than 12,000 financial transactions per second globally, Fiserv (NASDAQ: FISV) provides payment processing and financial technology solutions that enable merchants, banks, and credit unions to accept payments and manage financial transactions.

Why Does FISV Give Us Pause?

1. The company has faced growth challenges as its 5.3% annual revenue increases over the last two years fell short of other financials companies
2. Earnings per share lagged its peers over the last two years as they only grew by 7% annually
3. ROE of 9.4% reflects management’s challenges in identifying attractive investment opportunities

Fiserv is trading at $58 per share, or 7.1x forward P/E. Dive into our free research report to see why there are better opportunities than FISV.

Two Value Stocks to Watch:

Piper Sandler (PIPR)

Forward P/E Ratio: 15x

Tracing its roots back to 1895 and rebranded from Piper Jaffray in 2020, Piper Sandler (NYSE: PIPR) is an investment bank that provides advisory services, capital raising, institutional brokerage, and research for corporations, governments, and institutional investors.

Why Will PIPR Beat the Market?

1. Market share has increased this cycle as its 18.9% annual revenue growth over the last two years was exceptional
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 38.3% outpaced its revenue gains
3. Annual tangible book value per share growth of 13.4% over the last two years was superb and indicates its capital strength increased during this cycle

Piper Sandler’s stock price of $298.60 implies a valuation ratio of 15x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Donnelley Financial Solutions (DFIN)

Forward P/E Ratio: 10.5x

Born from the need to navigate increasingly complex financial regulations in the digital age, Donnelley Financial Solutions (NYSE: DFIN) provides software and technology-enabled services that help companies comply with SEC regulations and manage financial transactions and reporting requirements.

Why Does DFIN Stand Out?

1. Earnings per share have outperformed the peer group average over the last five years, increasing by 15.7% annually
2. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

At $46.05 per share, Donnelley Financial Solutions trades at 10.5x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

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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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.